A man takes a personal loan worth Rs.3,00,000 at an interest rate of 6% per annum compounded monthly to be repaid by equal monthly installments in 3 years, then the EMI using flat rate method will be:-
A man takes a personal loan worth Rs.3,00,000 at an interest rate of 6% per annum compounded monthly to be repaid by equal monthly installments in 3 years, then the EMI using flat rate method will be:-
Solution
Given:
- Loan Amount (Principal) = Rs. 3,00,000
- Interest Rate = 6% per annum
- Time Period = 3 years
- Method = Flat Rate Method
In flat rate method, simple interest is calculated on the original loan amount for the entire period.
Calculate Simple Interest using: SI = (P × R × T) / 100
SI = (3,00,000 × 6 × 3) / 100
SI = 54,00,000 / 100
SI = Rs. 54,000
Total Amount to be repaid:
Total Amount = Principal + Simple Interest
Total Amount = 3,00,000 + 54,000
Total Amount = Rs. 3,54,000
Number of monthly installments:
Number of months = 3 × 12
Number of months = 36 months
Calculate EMI:
EMI = Total Amount / Number of Months
EMI = 3,54,000 / 36
EMI = Rs. 9,833.33
Therefore, the EMI using flat rate method is Rs. 9,833.33.
Related questions:
2025: 13 May Shift 1
2025: 13 May Shift 2
2026: 19 May Shift 2
2025: 2 June Shift 1