How to calculate EMI ?
EMI = Pi/[q(1-[1+(i/q)]^-nq)].
P = Loan Amount, or, Principal Amount
i = Interest Rate per Year
q = no of payment periods per year
n = no of loan years
So, if you wanted to calculate the EMI for a loan amount of Rs.300000, with an interest rate of 10% per year, payable in monthly installments over 20 years:
EMI = (300000*0.1)/(12*(1-((1+(0.1/12))^(-20*12))))
EMI = Rs.28,950
Source :http://mathforum.org/dr.math/faq/faq.interest.html
