Calculating EMI for a loan

Related BrainMass Solutions

• Amortizing Loan. You take out a 30-year $100,000 mortgage loan with an APR of 6 percent and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?

  First calculate the EMI for the mortgage.

• Amortization - Early Payoff: Robert - What will the remaining balance be on the loan after he makes the 36th payment?

  Looking ahead, Robert thinks there is a chance that he will want to pay off the loan early, after 3 years (36 months). What will the remaining balance be on the loan after he makes the 36th payment? First calculate the EMI for the loan.

• Calculating EMI of a loan

  225594 Calculating EMI of a loan A.) On January 1, 2007, Sammy Sosa offers to buy Mark Grace's used snowmobile for $8,000, payable in 5 equal installments, which are to include 8.25% interest on the unpaid balance and a portion of the principal.

• Loan amortization schedule

  Solution explains the steps for calculating EMI for a given loan. It also explains making loan amortization schedule.

• Home Loan Repayment

  EMI = (Loan Amount*r)/(1-1/(1+r)^n) r=6%/12=0.5% per month n=30*12=360 EMI = (100000*0.5%)/(1-1/(1+0.5%)^360) =599.55 This solution calculates month repayments on a loan, given the amount, constant borrowing rate, inflation rate and repayment schedule

• Amortization table

  The solution explains how to construct an amortization table for a variable rate mortgage loan in excel

• Real Estate Loan Calculations

  Equal Monthly Installment = EMI =A*r/(1-1/(1+r)^n) Monthly interest rate = r = 8%/12=0.6667% A = $1000000 n=30*12 =360 months EMI = 1000000*0.6667%/(1-1/(1+0.6667%)^360) = $7337.92 This solution assists in specific real estate loan calculations

• Present Value and EMI Calculations

  pv= 0 answer should be pmt =872.98 Solution: Here we are calculating an annuity that will result in a particular future value.

• Time Value of Money and Bottom Line

  Use of Concept: When we are approaching a commercial bank for a car or housing loan, the bank is using the TVM principles to work out the repayment schedule for us. The amount of loan we are taking is the present value of loan.