Determine the amount of equal payment to be made for a loan of 2,00,000 taken fora 
period of 4 years at 10% rate of interest.

To determine the equal payment for the loan, we use the formula for **Equated Monthly Installment (EMI)**, which is typically calculated using the following formula:

\[
EMI = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- \(P\) = Principal amount (loan) = ₹2,00,000
- \(r\) = Monthly interest rate = Annual interest rate / 12 = 10% / 12 = 0.10 / 12 = 0.00833
- \(n\) = Number of months = 4 years × 12 = 48 months

Let's calculate the EMI using this formula.The equal monthly payment (EMI) for the loan of ₹2,00,000 over a period of 4 years at an interest rate of 10% is approximately **₹5,072.52**.

Would you like more details or have any questions about this calculation?

Here are 5 related questions:
1. What would the EMI be if the loan period was extended to 5 years?
2. How much total interest will be paid over the 4-year period?
3. How does the EMI change with a 12% interest rate?
4. Can you calculate the total amount paid over the loan's duration?
5. How does increasing the loan amount to ₹3,00,000 affect the EMI?

**Tip**: A lower interest rate or a longer loan period can reduce the EMI, but you'll end up paying more in total interest over time.

Determine the amount of equal payment to be made for a loan of ₹2,00,000 taken for a period of 4 years at 10% rate of interest.

Discover how to calculate the Equated Monthly Installment (EMI) for a ₹2,00,000 loan over 4 years at an annual interest rate of 10%. This solution uses the EMI formula and explains each step clearly. Suitable for students in Grades 10-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation