Formula M = P * ( J / (1-(1+J)^-N))
Here
- M = payable amount
- P = principal ( how much amount borrowed)
- J = Effective interest rate. (for example interest rate is 8% , and pay EMI (12 times in year) J = 0.08/12 = 0.0067)
- N = Total number of payments (for example loan term is 15 years , N = 12 *15= 180)
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