GIVE A DETAILED WAY TO CALCULATE .FOR EVERY MONTH WE HAVE TO CALCULATE OR ANY OTHER EASYWAY .
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GIVE A DETAILED WAY TO CALCULATE .FOR EVERY MONTH WE HAVE TO CALCULATE OR ANY OTHER EASYWAY .
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The interest if calculated for the whole term of loan on reducing the monthly instalments and then principal and interest summed up. Thereafter, the resultant amount is divided by number of months and it gives the amount payable per month.
For example, the loan amount is 100 and the monthly instalment is 10 and duration is 10 months. In the first month the interest will be calculated for 10 months and will be added to 100 and EMI of 10 will be reduced, next month the balance i.e. 100+interest thereon for 10 months – 10 will be taken into account, to calculate the interest. Similarly, it will be done for the next nine months. In this way 100+interest thereon will be divided by 10 months, it will be your final EMI.
This is just to explain like a layman and understand. Otherwise, EMI calculators are available on all most all the loan provider agencies and you can visit any one of them.