Category: Financial

  Loan Amount (P) 3000000 Interest Rate 10.75 Interest Rate in % per Month ( r ) 0.008958333 Tenure: No. Of Installments (Years) 10 Tenure: No. Of Installments (Months) (n) 120 Processing Fee (0.5%) 15000 Total Interest Amount payable by the end of tenure 3225000 Interest Potion in EMI Amount 322500 Pre-payment Fee       1+r 1.0 (1+r)^n 2.9   ((1+r)^n – 1) 1.9   P*r 26875 EMI 40902 Total Interest Amount payable by the end of tenure 1908192 Total Interest Amount payable in EMI 15902 Overall (principal + Interest) Amount payable by the end of tenure 4908192   […]

  Suppose you take on a loan for P Rupees, the tenure of the loan is n months (for example, n=240 for a 20-year loan), the monthly rate of interest is r (usually calculated by dividing the annual rate of interest quoted by the bank by 12, the number of months in a year, and dividing that by 100 as the rate is usually quoted as a percentage) and E Rupees is the EMI you have to pay every month. Let us use Pi to denote the amount you still owe to the bank at the end of the i-th […]