Mathematics · Financial Mathematics
Assertion: In a home loan with an Equated Monthly Installment (EMI) structure, the proportion of the principal component within the monthly payment increases as the loan tenure progresses. Reasoning: Since the interest is calculated on the reducing balance of the principal, the interest component decreases over time as more principal is repaid, and because the total EMI remains constant, the remaining portion of the payment allocated to the principal must necessarily increase.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both the Assertion and Reasoning are incorr ect.
- 2The Asserti on is correct but the Reasoning is incorrect.
- 3Both Assertion and Reasoning are correct but the Reasoning is not the correct explanation of the Assertion.
- 4Both Assertion and Reasoning are correct and the Reasoning is the correct explanation of the Assertion.✓
Correct answer
Both Assertion and Reasoning are correct and the Reasoning is the correct explanation of the Assertion.
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