Statistics & Applications

Financial Math

Medium

applied

Mr. X wishes to purchase a flat for Rs. 44,60,800 with a down payment of Rs 10,00,000 and balance in equal monthly installments (EMI) for 20 years. If bank charges 7.5% per annum compounded monthly, then the EMI is:

[Given that $(1.00625)^{240} \approx 4.4608$ ]

Rs. 31250

Rs. 37285

Rs. 27880

Rs. 30280

✅ Correct Option: 3

The total flat cost is Rs. 44,60,800 with a down payment of Rs. 10,00,000.

Loan amount = Rs. 44,60,800 - Rs. 10,00,000 = Rs. 34,60,800

Given information:

Principal (P) = Rs. 34,60,800

Time period = 20 years = 240 months

Annual interest rate = 7.5%

Monthly interest rate (r) = $\frac{7.5\%}{12} = 0.625\% = 0.00625$

$(1.00625)^{240} = 4.4608$

The EMI formula is:

$EMI = \frac{P \times r \times (1+r)^n}{(1+r)^n - 1}$

Substituting the values:

$EMI = \frac{34,60,800 \times 0.00625 \times (1.00625)^{240}}{(1.00625)^{240} - 1}$

$EMI = \frac{34,60,800 \times 0.00625 \times 4.4608}{4.4608 - 1}$

Calculate the numerator:

$34,60,800 \times 0.00625 = 21,630$

$21,630 \times 4.4608 = 96,502.464$

Calculate the denominator:

$4.4608 - 1 = 3.4608$

Therefore:

$EMI = \frac{96,502.464}{3.4608}$

$EMI = 27,880$

The EMI is Rs. 27,880.

2024: 16 May Shift 1

A Multinational company creates a sinking fund by setting a sum of ₹ $12,000$ annually for $10$ years to pay off a bond issue of ₹ $72,000$ . If the fund accumulates at $5 \%$ per annum compound interest, then the surplus after paying for bond is :

(Use $\left.(1.05)^{10} \approx 1.6\right)$

2025: 14 May Shift 1

A sofa set costing ₹ 36000 has a useful life of 10 years. If the annual depreciation is ₹ 3000, then the scrap value by linear method is:

2025: 15 May Shift 1

A person has purchased a home for Rs.10,00,000 with down payment of Rs 2,00,000. He amortize the balance at 9% per annum compounded monthly for 25 years then the equal monthly installment (EMI) is:

[Given that: $\frac{(1.0075)^{300} - 1}{(.0075)(1.0075)^{300}} = 119.1616]$

2026: 22 May Shift 1

What amount is received at the end of every 6 months forever, if ₹72,000 kept in a bank earns 8% per annum compounded half-yearly?

2026: 15 May Shift 1

Which of the following statements are correct about the compound annual growth rate (CAGR) ?

A. CAGR is a compounded annual return of an investment.

B. CAGR is calculated by using the final and beginning value of an investment.

C. CAGR can be used to calculate and communicate the average growth of a single investment.

D. CAGR can be used to demonstrate and compare the performance of investment advisors.

Choose the correct answer from the options given below:

2026: 30 May Shift 2

Shyamaji takes a loan of ₹20,00,000 with 10% annual interest rate for 10 years. What will be her EMI under flat rate system?

Solution

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