EMI calculating formula

This is the standard EMI formula to judge how much effective rate of interest you are paying for the stipulated period of the loan

E = P.r.[(1+r)^n/{(1+r)^n – 1}

Here E denotes EMI

P denotes Principal loan amount

‘r’ is rate of interest calculated on monthly basis (i.e. r = Rate of Annual interest/12/100.

‘n’ is loan term or tenure or duration in number of months.

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