Pls tell me EMI Calculation with an example? |
Pankaj Arora (Learner) (3134 Points)
28 January 2012
Pls tell me EMI Calculation with an example? |
ashish gupta
( student)
(1922 Points)
Replied 28 January 2012
very easy to calculate EMI. I dont have example right now. but you can try yourself in excel. Formula in excel is PMT i.e. as under:
Calculates the payment for a loan based on constant payments and a constant interest rate.
Syntax
PMT(rate,nper,pv,fv,type)
For a more complete descripttion of the arguments in PMT, see the PV function.
Rate is the interest rate for the loan.
Nper is the total number of payments for the loan.
Pv is the present value, or the total amount that a series of future payments is worth now; also known as the principal.
Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
Type is the number 0 (zero) or 1 and indicates when payments are due.
Set type equal to | If payments are due |
---|---|
0 or omitted | At the end of the period |
1 | At the beginning of the period |
Tip To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.
Example 1
The example may be easier to understand if you copy it to a blank worksheet.
Note Do not select the row or column headers.
|
|
Example 2
You can use PMT to determine payments to annuities other than loans.
The example may be easier to understand if you copy it to a blank worksheet.
Note Do not select the row or column headers.
|
|
Note The interest rate is divided by 12 to get a monthly rate. The number of years the money is paid out is multiplied by 12 to get the number of payments.
ashish gupta
( student)
(1922 Points)
Replied 28 January 2012
very easy to calculate EMI. I dont have example right now. but you can try yourself in excel. Formula in excel is PMT i.e. as under:
Calculates the payment for a loan based on constant payments and a constant interest rate.
Syntax
PMT(rate,nper,pv,fv,type)
For a more complete descripttion of the arguments in PMT, see the PV function.
Rate is the interest rate for the loan.
Nper is the total number of payments for the loan.
Pv is the present value, or the total amount that a series of future payments is worth now; also known as the principal.
Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
Type is the number 0 (zero) or 1 and indicates when payments are due.
Set type equal to | If payments are due |
---|---|
0 or omitted | At the end of the period |
1 | At the beginning of the period |
Tip To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.
Example 1
The example may be easier to understand if you copy it to a blank worksheet.
Note Do not select the row or column headers.
|
|
Example 2
You can use PMT to determine payments to annuities other than loans.
The example may be easier to understand if you copy it to a blank worksheet.
Note Do not select the row or column headers.
|
|
Note The interest rate is divided by 12 to get a monthly rate. The number of years the money is paid out is multiplied by 12 to get the number of payments.
Pankaj Arora
(Learner)
(3134 Points)
Replied 28 January 2012
Hey if you know pls tell me at least don’t copy text from excel…
ashish gupta
( student)
(1922 Points)
Replied 28 January 2012
ok lets understand in simple language.
first of all divide the rate of interest with 12 to get the monthly rate of interest and take the loan period in months.
now get the cummulitive present value for the interest rate for the period of loan. now divide the loan amount with the commulitive present value. result will be your EMI
Pankaj Arora
(Learner)
(3134 Points)
Replied 28 January 2012
OK suppose mr. x tooks a loan of rs. 1000 for one year @ 10 % pls calculate emi with your explanation ?
ashish gupta
( student)
(1922 Points)
Replied 28 January 2012
please see the attached calculation,
bcshettyco
(Chartered Accountant In Practice)
(65 Points)
Replied 20 March 2012
Please click on the below link :
https://www.cabcshettyco.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=EMI&Parent=Calculators&Current=EMI
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
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