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CUET · MATHS · PYQ PAPER 2025

A person wishes to purchase a house for ₹ \(39,65,000\) with a down payment of ₹ \(5,00,000\) and balance in equal monthly installments (EMI) for 25 years.
If bank charges \(6 \%\) per annum compounded monthly, then EMI on reducing balance payment method is:
[Given \((1.005)^{300}=4.465\) ]

  1. A ₹ \(22325\)
  2. B ₹ \(36542\)
  3. C ₹ \(21652\)
  4. D ₹ \(34500\)
Verified Solution

Answer & Solution

Correct Answer

(A) ₹ \(22325\)

Step-by-step Solution

Detailed explanation

Loan Amount \(P = 39,65,000 - 5,00,000 = 34,65,000\) Monthly interest rate \(r = \frac{0.06}{12} = 0.005\) Number of installments \(n = 25 \times 12 = 300\) EMI \( = P \times \frac{r (1 + r)^n}{(1 + r)^n - 1} \)…
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