let the amount be 100000INR

Interest rate be 12 percent

Tenure periode be 1 year.

Plz calculate EMI.Also give the formula.

Helo ,what is 0.6 in ur answer?

let the amount be 100000INR

Interest rate be 12 percent

Tenure periode be 1 year.

Plz calculate EMI.Also give the formula.

Helo ,what is 0.6 in ur answer?

100000 x 12% = 12000 x0.6 = 7200

100000 + 7200 = 107200/12 = 8935 Approximately

When you pay the EMIs regularly the last EMI will be less and in a diminishing manner

they calculate and adjust the same to your loan account

let us make calculations simpler.

loan amount = 12000

tenure = 1 year = 12 emi

rate of interest = 12% = 1% per month

month of borrowing = dec.

1 emi due in jan

2 emi due in feb

12 emi due in dec.

in jan 12000/12(=1000) +120 =1120

in feb 12000/12(=1000) +110 =1110

in feb 12000/12(=1000) +10 =1010

so total interest =120+110+100+90 …..10 = 780

which means 12000+780 = 12780 need to be paid to close the loan account.

120780/12 = 1065 is the EMI

for ready use the link is given below.

In most loans interest is calculated on a daily basis and posted monthly. For Rs.100000/- @12% for one year–

100000X12% =100000X.12=12000

Principal + Interest=112000/-

If your tenure of loan is 12 months EMI=112000/12=9333.33=9334/-appx

In this example it is assumed that there are no charges like processing charge, closing charge, charges for notice to the loaned etc.Interest is calculated annually.

To calculate on monthly basis use the formula A= P(1+r/100)raised to n times

—————-

n

A= the total principal + interest at the end of n years and r is the rate of interest.

EMI =( AMOUNT {1+R/100}T) / NO.OF EMI

= (100000{1+12/100} / 12

= 112000/12

= 9333.33 INR