How to Calculate Loan EMI
How to Calculate Loan EMI ?
If
Loan Amount (P) = 1 Lakh
Rate of Interest (r) = 10%
Tenure (n) = 12 Month or 1 Year.
We are going to Find the Answer by Using below Formula,
EMI = P*r*(1+r)^n/((1+r)^n-1)
Where
P is the Loan Amount,
r is Rate of Interest
n is Tenure or Number of years.
Hence, Rate of Interest in Percentage so we have to Convert shown below
r = 10%
= 10/12*100
= 0.00833333
Hence therefore,
Rate of Interest ( r ) = 0.00833333
Now all these have to be applied in this formula.
EMI = P*r*(1+r)^n/((1+r)^n-1)
= 100000*0.00833333*(1+0.00833333)^12/((1+0.00833333)^12-1)
= 8791.5
Therefore EMI = ₹ 8791.5
For More Details see below video ,
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