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 ,


TNANK YOU,
BANKING TIPS.








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