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Equated Monthly Installment ( EMI )
#1
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
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#2
(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
Reply
#3
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
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