What Does EMI Stand For?
Indeed, you probably heard this word so often and preferred to express it more than two times or threefold per day. However, everybody knows it with transient sounds EMI. Be that as it may, have at any point thought about what this word means and what the full type of these three letters in order is? Thus, EMI (compared to regularly scheduled payment) is a set regularly scheduled installment given by a loaner to a bank on a specific day, consistently. EMIs apply to both interest and head every month, and the credit is taken care of in full over certain years.
What is EMI Calculator?
Well, the word has a meaning itself but if we talk about it in easy words it is a basic calculator that helps you to calculate the EMI (equated monthly installment), monthly interest, and monthly reducing balance on the basis of the principal amount, loan tenure, and interest rate.
How does This Calculator work?
The numerical equation for ascertaining EMIs is:-
where P represents the credit sum or head, R is the loan fee each month [if the financing cost per annum is 11%, then, at that point, the pace of interest will be 11/(12 x 100)], and N is the quantity of regularly scheduled payments.
Here are the words with meanings so that you would not be confused with the formula:-
- E is EMI
- P is the Principal Loan Amount
- r is the rate of interest calculated on monthly basis. (i.e., r = Rate of Annual interest/12/100. If the rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
- n is loan term/tenure/duration in the number of months
Although, if you ever get confused using the calculator then here are the words you can get help with. enter the following information in the EMI Calculator:-
- The principal loan amount you wish to avail (rupees)
- Loan term/Tenure (in months)
- Rate of interest (percentage)