## โ
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.

## โ
Calculate Your EMI Using Mathematical Formula

**๐EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)],**

In this formula the variables stand for:

**๐EMI** is the equated monthly instalment

**๐P** is the principal or the amount that is borrowed as a loan

**๐R** is the rate of interest that is levied on the loan amount (the interest rate should be a monthly rate)

**๐N** is the tenure of repayment of the loan or the number of monthly instalment
that you will pay (tenure should be in months)