Final answer:
The student's question involves the calculation of an EMI using the reducing balance method for a Rs 60,000 loan at 10% monthly interest over 5 months. Calculating EMI includes deductions of the interest component from each payment, with the remainder applied to the principal.
Step-by-step explanation:
The question deals with the calculation of the Equated Monthly Instalment (EMI) for a loan taken with the reducing balance method. Anurag has taken a loan of Rs 60,000 at a 10% monthly interest rate, to be repaid over 5 months.
Calculating the EMI and the interest and principal component for each EMI would require the use of an EMI calculator formula specific to the reducing balance method. While the exact calculations are not provided here, the formula generally involves the principal amount, the monthly interest rate, and the number of payments. A general example of such a calculation is as follows: the EMI can be calculated using the formula PV = R [1 - (1+i)^-n]/i, where PV is the principal amount, R is the payment, i is the monthly interest rate, and n is the number of months.
For each EMI paid, the interest component is calculated first on the remaining balance, and the rest goes towards the principal. As the balance reduces, the interest component decreases, and more of the EMI is applied to the principal. Detailed financial calculations can be used to extract the exact figures, but these would require the use of financial functions often found in spreadsheet software or financial calculators.