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

Solution

✅ Correct Option: 3

Under the flat rate method, interest =1000000×0.12×5=600000=1000000 \times 0.12 \times 5=600000. Total repayable =1000000+600000=1600000=1000000+600000=1600000 over 6060 months, so EMI =160000060=26666.67=\frac{1600000}{60}=26666.67.

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