ExamBro
ExamBro
CUET · MATHS · PYQ PAPER 2025

Mohini purchases a house worth Rs. 50 lakhs and makes a down payment of Rs. 11.2 lakhs. She pays the remaining amount on monthly EMI using a reducing balance method. The bank charges 6% per annum compounded monthly for a tenure of 25 years.
Her EMI is:
[Given: \((1.005)^{-300}\) ≈ 0.224]

  1. A Rs. 11200
  2. B Rs. 38800
  3. C Rs. 25000
  4. D Rs. 22400
Verified Solution

Answer & Solution

Correct Answer

(C) Rs. 25000

Step-by-step Solution

Detailed explanation

\( P = 50,00,000 - 11,20,000 = 38,80,000 \) \( r = 0.06 / 12 = 0.005 \) \( n = 25 \times 12 = 300 \) \( EMI = P \frac{r}{1 - (1+r)^{-n}} = 38,80,000 \times \frac{0.005}{1 - (1.005)^{-300}} \)…