﻿ Equated_Monthly_Installment
 Description EMI refers to the monthly repayment of the loan that a borrower needs to make. This monthly payment is often constant over the period of the loan. EMI's are popular mechanisms of payment particuarly in consumer financing. Calculator Currency Select required currency \$ £ € ¥ Rs Loan Amount Input loan amount Interest Rate Input percentage Payment period Select compounding mode Monthly Quarterly Semiannually Annually Maturity Period Input year's value Years Input months value Months Required Output Periodic Interest Rate Total Number Of Payment Periods Total Cost Of Loan Copyright @2010 All Right Reserved by SpreadsheetConverter http://www.spreadsheetconverter.com
 Parameters 1. Loan Amount The total amout that a borrower borrows. 2. Interest Rate/Annual Percentage Rate(APR) The annual interest rate applicable to the loan quoted by the lender of the fund. Interest rates may be quoted on annual, semiannual, quarterly and monthly basis. 3. Maturity The tenure for which the loan is taken. Maturity is often quoted in years and months. Case A man wants to purchase a new car costing \$15000. He wants to fund his purchase from a local bank who quotes an interest rate of 9%. Furthermore, the interest has to be paid twice every year (semiannual compounding) for a period of 10 years and 6 months. The EMI payments for this loan is calculated as follows a. Input loan amount (i.e \$15000) in the loan amount input cell of the calculator. Change currency from the drop down list. b. Input 9 in the interest rate input cell corresponding to the interest rate charged by the bank. Change the compounding method from the drop down list c. Input 10 in the years input cell and 6 in the months input cell. d. Notice that the equivalent periodic interest rate and number of payment periods are automatically calculated. e. The EMI for the loan application is also calculated automatically on the basis of the information generated in (d). Copyright @2010 All Right Reserved by SpreadsheetConverter http://www.spreadsheetconverter.com