Equated Monthly Installment (EMI)
A fixed monthly amount for loan repayment covering both principal and returns.
Detailed Description
Equated Monthly Installment (EMI)
What does EMI stand for?
EMI stands for Equated Monthly Installment.
How is EMI calculated?
EMI is calculated using the formula: EMI = P × r × (1 + r)^n / ((1 + r)^n - 1), where P is the principal amount, r is the monthly interest rate, and n is the number of installments.
What are the main components of EMI?
The main components of EMI are the principal amount and the interest.
What are some common types of loans that use EMI?
Common types of loans that use EMI include home loans, personal loans, auto loans, and education loans.
What are some tips for managing EMI payments?
Tips for managing EMI payments include budgeting, automating payments, considering prepayment options, and maintaining an emergency fund.