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CUET · MATHS · PYQ PAPER 2025

Which of the following are correct about equated monthly installments (EMI)?
(A) The EMI depends on principal borrowed, rate of interest and tenure of the loan.
(B) It is a fixed amount made by borrower to the lender every month.
(C) The interest remains constant for every EMI in reducing balance method.
(D) As we pay off our loan, the outstanding principal amount decreases with every EMI in reducing balance method.
Choose the correct answer from the options given below :

  1. A (A), (B) and (C) only
  2. B (A), (B) and (D) only
  3. C (A), (B), (C) and (D)
  4. D (C) and (D) only
Verified Solution

Answer & Solution

Correct Answer

(B) (A), (B) and (D) only

Step-by-step Solution

Detailed explanation

(A) Correct (B) Correct (C) Incorrect (D) Correct The correct answer is (A), (B) and (D) only.
From CUET
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