Calculate EMI - Manually

Usually while preparing Project Reports for banks, we need to calculate EMI for the proposed loan so as to frame out the loan repayment schedules. Though, there are many online calculators available, I believe its the Best when you can do it Yourself.

Moving on the same lines, I found a simple formula to find out EMI, given the other particulars as detailed below:

EMI = (P*r) [(1+r) ^ n /(1+r) ^ n -1]

Where

P= Principal i.e. Amount of Loan

r= Rate of Interest per installment period i.e. monthly, quarterly etc.

n= The tenure of the loan.

** These days we usually, actually mostly use spreadsheets for preparing Project Reports. Use 'PMT' function to calculate EMI and add to your productivity.

P.S.: EMI payment loan are heavily tilted towards interest payments at the start and principal repayments at the end of the loan tenure.

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THE RULE OF 72 - Quite Interesting

Yesterday, while surfing a book, I got something interesting to share with you..THE RULE OF 72; some of you might be knowing it but for me it was quite new and may be for most of you. So here it goes..

I have Rs. 10000/- to invest into but i want to know how long it will take to get my money doubled if a rate of 6% p.a. is offered. Of course, there are many other ways to find the same, but the easiest one I have found is the 72 RULE i.e.

Divide 72 with the rate of return i.e. 6% which comes out to be 72/6 = 12. So, it will take 12 full years to get my money doubled.

Wait..there is one assumption, the simple one actually i.e. any part of amount is not withdrawn during the period.

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