EMI

✅What is an EMI?

A loan is a financial agreement between two parties, a lender and a borrower. Under this agreement, the lender gives a specific amount of money to the borrower with the intent that the amount borrowed is paid back with interest as monthly instalment over a predetermined period of time by the borrower.

✅Calculate Your EMI Using Mathematical Formula

👉EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)],

In this formula the variables stand for:

👉EMI is the equated monthly instalment

👉P is the principal or the amount that is borrowed as a loan

👉R is the rate of interest that is levied on the loan amount (the interest rate should be a monthly rate)

👉N is the tenure of repayment of the loan or the number of monthly instalment that you will pay (tenure should be in months)