Equated Monthly Installment ( EMI ) admin Administrator       Posts: 37 Threads: 35 Joined: Nov 2014 Reputation: 1 Sex: Undisclosed 03-10-2015, 10:34 PM (This post was last modified: 03-10-2015, 10:35 PM by admin.) The formula for calculation of EMI given the loan , term and interest rate is : EMI =(P*r)    (1+r)*/ (1+r))^n - 1 P = principle (amount of loan ) r= rate of interest  per installment period , if r = 12 % per anum then r= 0.01,  n= no of installments  Find the EMI for a housing loan of  Rs.  10,00,000/- at an interest rate of  10.50 % per annum repayable in 15 years here convert  value r and n such that r= 10.50 % = 0.00875 n= 15 * 12 = 180  (convert in months ) put all the values in formula and calculate answer. generally this type of question not ask in exam due to its long calculation so remind formula for future use bellad1981 Junior Member  Posts: 1 Threads: 0 Joined: Mar 2015 Reputation: 0 03-23-2015, 01:25 PM (03-10-2015, 10:34 PM)admin Wrote: The formula for calculation of EMI given the loan , term and interest rate is : EMI =(P*r)    (1+r)*/ (1+r))^n - 1 P = principle (amount of loan ) r= rate of interest  per installment period , if r = 12 % per anum then r= 0.01,  n= no of installments  Find the EMI for a housing loan of  Rs.  10,00,000/- at an interest rate of  10.50 % per annum repayable in 15 years here convert  value r and n such that r= 10.50 % = 0.00875 n= 15 * 12 = 180  (convert in months ) put all the values in formula and calculate answer. generally this type of question not ask in exam due to its long calculation so remind formula for future use How you arrived 12%= 0.01 & 10.50%=0.00875 clarify in detail admin Administrator       Posts: 37 Threads: 35 Joined: Nov 2014 Reputation: 1 Sex: Undisclosed 03-23-2015, 07:36 PM here r= 12%/12 = 12/12*100 for a fix tenure means one year so r =0.01 same with r = 10.50%/12 =10.50/12*100 so r = 0.00875 « Next Oldest | Next Newest » 