Statistics & Applications

Financial Math

Easy

applied

Kavya takes a personal loan of ₹ 10,00,000 at the rate of 12% per annum for 5 years, then the EMI by using flat rate method is

₹ 26,666.66

₹ 36,666.66

₹ 16,666.66

₹ 46,666.66

✅ Correct Option: 1

Given:

Loan Amount (Principal) = ₹ 10,00,000

Interest Rate = 12% per annum

Loan Period = 5 years

Method = Flat Rate Method

In the flat rate method, interest is calculated on the original principal amount for the entire loan period.

Total Interest = $\dfrac{\text{Principal} \times \text{Rate} \times \text{Time}}{100}$

Total Interest = $\dfrac{10,00,000 \times 12 \times 5}{100}$

Total Interest = $\dfrac{60,00,000}{100}$

Total Interest = ₹ 6,00,000

Total Amount to Repay = Principal + Total Interest

Total Amount to Repay = ₹ 10,00,000 + ₹ 6,00,000

Total Amount to Repay = ₹ 16,00,000

Number of months = 5 years $\times$ 12 months/year

Number of months = 60 months

EMI = $\dfrac{\text{Total Amount}}{\text{Number of Months}}$

EMI = $\dfrac{16,00,000}{60}$

EMI = ₹ 26,666.66

Therefore, the EMI using the flat rate method is ₹ 26,666.66

2026: 22 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Nominal rate of return	(I) $EMI=\frac{Principal+Interest}{Period\ in\ months}$
(B) CAGR	(II) $\frac{Original\ value\ of\ the\ asset-Salvage\ value\ of\ the\ asset}{Useful\ life\ of\ the\ asset}$
(C) Flat rate method	(III) $\frac{Current\ market\ value\ of\ investment-Original\ investment\ value}{Original\ investment\ value}\times100$
(D) Annual depreciation	(IV) $\left(\frac{Investment\ at\ the\ end\ of\ investment\ period}{Investment\ at\ the\ beginning\ of\ the\ period}\right)^{\frac{1}{investment\ period}}-1$

Choose the correct answer from the options given below:

2026: 19 May Shift 2

Ram took a home loan of ₹ 45,00,000 at the rate of 6% per annum for 25 years. His EMI by using flat rate method is

2025: 29 May Shift 2

Every year the price of a motorcycle depreciates by Rs. 15000. After 12 years its price has become Rs. 50000. Then its original cost was:

2025: 14 May Shift 2

Mr. X wishes to purchase a house for ₹ 14,51,400 from a bank and decided to repay the loan by equal monthly installments (EMI) in 10 years. If bank charges interest at 9 % per annum compounded monthly, then the EMI is:

[Given that $(1.0075)^{120} = 2.4514]$

2025: 2 June Shift 1

The amount of money needed to ensure for a prize of ₹ 5000 at the begining of each year indefinitely if money is worth 5% compounded annually is:

2026: 22 May Shift 2

Which of the following are true about sinking fund?

(A) Sinking fund is a fixed term account.

(B) A fixed amount is deposited at pre defined regular intervals.

(D) It is setup for a particular upcoming expense.

Choose the correct answer from the options given below:

Kavya takes a personal loan of ₹ 10,00,000 at the rate of 12% per annum for 5 years, then the EMI by using flat rate method is

Solution

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