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How to calculate the EMI - for loan purpose ?

 
 
Reply Mon 27 Jul, 2015 03:46 am
I want to know how to calculate EMI without excel formula.
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Type: Question • Score: 0 • Views: 470 • Replies: 2
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engineer
 
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Reply Mon 27 Jul, 2015 05:05 am
@shruthi6059,
https://upload.wikimedia.org/math/5/b/f/5bf8a6396ae80a3ef52ba6371cf6349a.png

A is the amount of the loan
r is the interest rate per interval. If you are paying 3% per year but paying monthly, it is .03/12.
n is the number of intervals. 360 months is you have a 30 year loan paying monthly.
knaivete
 
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Reply Mon 27 Jul, 2015 07:19 am
@engineer,
https://upload.wikimedia.org/math/5/b/f/5bf8a6396ae80a3ef52ba6371cf6349a.png

P is the Principal amount of the loan

A is the Annuity, the EMI , the equal monthly instalment

n is the number of payments , 360 monthly payments in a 30 year loan payable monthly in arrears.

The formula equates the Principal to the net present value of the future payments by summing the geometric progression.
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