Ramesh borrowed a home loan amount of ₹ 7,00,000 from a bank at an interest of 12% per annum for 30 years, to be paid in monthly installments. Based…

Ramesh borrowed a home loan amount of ₹ $\displaystyle 7,00,000$ from a bank at an interest of $\displaystyle 12$% per annum for $\displaystyle 30$ years, to be paid in monthly installments.

Based on the above information, answer the following questions :

Write the formula for calculating EMI by reducing balance method.

Write the values of P, i and n respectively.

Find the EMI. [Use $\displaystyle (1.01)^{-360}=0.02781668$]

If the loan is to be returned in $\displaystyle 20$ years, find EMI.

[Use $\displaystyle (1.01)^{-240}=0.09180584$]