CUET · MATHS · PYQ PAPER 2025
Mameesh took a loan of Rs 9,00,800 from bank at an interest rate of \(6 \%\) per annum for 10 years. If she has to pay the loan back with the help of equal monthly installments (EMI). Then, the EMI using reduced balance method is (approx) :
(Given: \((1.005)^{-120}=0.5496\))
- A Rs 12,000
- B Rs 9,000
- C Rs 10,000
- D Rs 9,820
Answer & Solution
Correct Answer
(C) Rs 10,000
Step-by-step Solution
Detailed explanation
\( P = 900800, r_a = 0.06, n_a = 10 \text{ years} \) \( N = n_a \times 12 = 10 \times 12 = 120 \text{ months} \) \( r_m = r_a / 12 = 0.06 / 12 = 0.005 \) \( EMI = P \cdot \frac{r_m}{1 - (1 + r_m)^{-N}} \) \( EMI = 900800 \cdot \frac{0.005}{1 - (1.005)^{-120}} \)…
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