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Case Studies on EMI
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Mr. Naveen borrowed an amount of Rs. 50000 for 8 years @ 18% roi. What shall be monthly payment?
Explanation :
Here,
P = 50000
R = 18% = 18 % ÷ 12 = 0.015 monthly
T = 8 yrs = 96 months
EMI = P * R * [(1+R)^T/(1+R)^T-1)]
EMI = 50000 * 0.015 * 1.01596 ÷ (1.01596 – 1)
= 986
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A person raised a house loan of Rs. 10 lac @ 12% roi repayable in 10 years. Calculate EMI.
Explanation :
Here,
P = 1000000
R = 12% monthly = 0.01% p.a.
T = 10 Y = 120 months
EMI = P * R * [(1+R)^T/(1+R)^T-1)]
So,
EMI = 1000000*0.01*(1+0.01)^120 ÷ {(1+0.01)^120 – 1}
= 14347
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If the sanctioned loan amount is Rs. 100000 at 12% interest for 2 years, calculate the EMI.
Solution :
EMI= P x r x (1 + r)^n / ((1+r)^n -1)
Here p = principal amount (loan taken)
r = interest rate per month (ex: if interest rate per annum is 10% then 10/(12*100))
n= tenure in months
EMI = 100000*0.01*(1+0.01)^24 /((1+0.01)^24 -1) = 4707
Where,
p = loan taken = 1,00,000
r = interest rate per month = 1% = 0.01
n = tenure in months = 2 Years = 24 months
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Ajit wants to receive Rs. 40000 p.a. for 20 years by investing @ 5%. How much he will have to invest now?
Explanation :
Here,
P = 40000
R = 5% p.a.
T = 20 yrs
PV = P / R * [(1+R)^T - 1]/(1+R)^T
PV = (40000 ÷ 0.05) * {(1.0520 – 1) ÷ 1.0520}
= 498489
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