𝗔𝟭 𝗘𝗠𝗜 𝗖𝗮𝗹𝗰 𝗣𝗿𝗼𝘃𝗶𝗱𝗲𝘀 𝗘𝗠𝗜 𝗖𝗮𝗹𝗰 – 𝗖𝗼𝗺𝗽𝗼𝘂𝗻𝗱 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗖𝗮𝗹𝗰 – 𝗛𝗼𝗺𝗲 𝗟𝗼𝗮𝗻 𝗖𝗮𝗹𝗰 𝗲𝘁𝗰.
𝗘.𝗠.𝗜 𝗖𝗮𝗹𝗰 :
EMI, which stands for Equated Monthly Instalment, refers to a predetermined fixed payment that borrowers make to lenders on a specific date each month. This regular instalment includes both the principal amount and the interest, allowing borrowers to gradually repay their loans over a set period. EMIs provide a structured repayment plan and are commonly used in various types of loans, such as home loans, car loans, and personal loans.
𝟭. 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗮𝗹 𝗮𝗺𝗼𝘂𝗻𝘁 :The initial loan amount or principal is a significant determinant of the EMI. A higher principal will result in a higher EMI, while a lower principal leads to a lower EMI.
𝟮. 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲 (%) : The annual rate of interest charged by the lender has a direct impact on the EMI. A higher interest rate results in a higher EMI, while a lower rate leads to a lower EMI.
𝟯. 𝗟𝗼𝗮𝗻 𝘁𝗲𝗻𝘂𝗿𝗲 : The duration of the loan, typically measured in months, affects the EMI. A longer tenure reduces the EMI amount but increases the total interest paid over the loan’s life, whereas a shorter tenure increases the EMI but reduces the overall interest cost.
𝗖𝗼𝗺𝗽𝗼𝘂𝗻𝗱 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗖𝗮𝗹𝗰 :
Compound interest is the interest you earn on interest.
𝗛𝗼𝗺𝗲 𝗟𝗼𝗮𝗻 𝗖𝗮𝗹𝗰 :
A home loan is a secured loan that is obtained to purchase a property by offering it as collateral. Home loans offer high-value funding at economical interest rates and for long tenures. They are repaid through EMIs.
𝗕𝗮𝘀𝗶𝗰 𝗖𝗮𝗹𝗰 :
A Basic Calc is that performs arithmetic operations on numbers. Basic calculators can do only addition, subtraction, multiplication and division mathematical calculations.
𝗙𝗲𝗮𝘁𝘂𝗿𝗲𝘀 :
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