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Ravi takes a loan of Rs. 40,000 at an interest of 12% per annum for a period of 4 year, then EMI by using flat method is :

Solution

✅ Correct Option: 2

Total interest by flat method =P×r×t=40000×0.12×4=19200=P\times r\times t=40000\times 0.12\times 4=19200.

Total amount =40000+19200=59200=40000+19200=59200.

Number of months =48=48.

EMI =5920048=1233.33=\frac{59200}{48}=1233.33.

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