A loan of ₹90,000 is taken at a flat rate of 8% a year for 3 years, repaid in equal monthly instalments. What is the EMI?

Explanation

1. 01

   Interest $= 90{,}000 \times 0.08 \times 3 = 21{,}600$ rupees.

2. 02

   EMI $= \frac{90{,}000 + 21{,}600}{36} = \frac{1{,}11{,}600}{36} = 3{,}100$ rupees.