Banking Recurring Deposit Accounts

A flat rate system calculates interest on the initial principal amount throughout the loan tenure. Here's the solution for the EMI under a flat rate system:

Step 1: Calculate Total Interest

Principal (P): ₹1200000

Rate of Interest (R): 12% per annum

Time Period (T): 10 years

Interest is given by the formula:

I = P \times R \times T / 100

Plug in the values:

I = 1200000 \times 12 \times 10 / 100 = 1440000

Step 2: Calculate Total Amount to be Repaid

Total Amount = Principal + Total Interest

A = 1200000 + 1440000 = 2640000

Step 3: Calculate Monthly EMI

EMI is total amount divided by number of months.

EMI = 2640000 / (10 \times 12) = 22000

Therefore, the EMI under the flat rate system is ₹22000.

High-Yield Trend

Chapter Questions
1 MCQs

Official Solution

Banking Recurring Deposit Accounts

High-Yield Trend

Chapter Questions 1 MCQs

Official Solution

Chapter Questions
1 MCQs