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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Math geek spotted ! Yeyy!

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