To calculate the interest rate involved, we can assume this is a loan with fixed EMIs. However, the exact formula to solve for the rate of interest (monthly or annual) requires the Loan EMI formula, which is given as:

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

where:

• $EMI$ = 27,219.26
• $P$ = Principal (2,17,754.08 in this case)
• $r$ = Monthly interest rate (we need to find this)
• $n$ = 8 months (loan tenure)

We can rearrange this equation to solve for $r$, which is a bit tricky algebraically. Alternatively, using numerical methods or iteration will make the solution easier. Let's solve this systematically.

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Solution:

I will now solve for the monthly interest rate using numerical estimation, since $r$ appears in both the numerator and the denominator.The calculation returned an extremely small negative interest rate, which suggests that the input parameters may not align well with typical loan EMI behavior. This could imply:

1. Incorrect EMI value: The EMI might not correspond to the loan balance and tenure given.
2. Unusual loan structure: The principal amount of ₹2,17,754.08 seems small relative to the EMI for 8 months.
3. Already included interest?: The loan might already have a certain interest component built-in, which complicates the reverse calculation.

Please verify the parameters, especially the EMI or loan tenure. Alternatively, provide the original loan amount (if different from the remaining amount) and we can attempt a refined calculation.

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Do you want to recheck your inputs or try another approach?

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5 Related Questions:

1. How is EMI calculated when the interest rate is compounded monthly?
2. What happens if the loan is pre-paid before tenure ends?
3. How to distinguish between monthly reducing and flat interest rate methods?
4. Can an EMI change during the tenure of a floating-rate loan?
5. How do banks calculate the effective interest rate for short-tenure loans?

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Tip: Always verify whether the EMI includes any insurance or additional fees beyond just the interest on the loan principal.