CUET · MATHS · PYQ PAPER 2023
A takes a loan of ₹ \(5,00,000\) at an interest rate for 5 years. The EMI paid by him is ₹ 10,000 . The effective interest rate for A is : (Under flat rate system)
- A 10%
- B 5%
- C 2.5%
- D 4%
Answer & Solution
Correct Answer
(D) 4%
Step-by-step Solution
Detailed explanation
Total amount paid \( = 10,000 \times 5 \times 12 = 6,00,000 \) Total interest paid \( = 6,00,000 - 5,00,000 = 1,00,000 \) Effective interest rate \( R = \frac{\text{Total Interest} \times 100}{\text{Principal} \times \text{Time}} \)…
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