A loan of ₹60,000 is repaid in 6 monthly instalments by the reducing-balance method, at 12% a year compounded monthly. To the nearest rupee, what is the EMI? (Take $(1.01)^{6} = 1.0615$ .)

₹10,356Correct answerYour answer₹10,600Correct answerYour answer₹10,800Correct answerYour answer₹11,200Correct answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

$i = 0.01$ , $n = 6$ : $E = \frac{60{,}000 \times 0.01 \times 1.0615}{0.0615}$ .
$E = \frac{636.9}{0.0615} \approx 10{,}356$ rupees.

Worth noting

₹10,600 is the flat-rate EMI, with 6 months' interest on the whole loan.

Ten questions from EMI, CAGR & Depreciation, at your own pace.

Ten questions from EMI, CAGR & Depreciation, at your own pace.

A loan of ₹60,000 is repaid in 6 monthly instalments by the reducing-balance method, at 12% a year compounded monthly. To the nearest rupee, what is the EMI? (Take (1.01)6=1.0615(1.01)^{6} = 1.0615(1.01)6=1.0615.)