Principal Rate Time Interest 1. 500 4 1 year 20 3. Every financial institution has a different method of calculating EMIs.
P is the principal P r is the annual rate of interest and n is the number of times the interest is compounded per year.
A P 1 rn nt. Two of the prominent methods for the calculation of EMI are fixed rate of interest calculation and second is the compound interest basis which is calculated on the basis of reducing balance. A P 1rnnt P. 600 7 1 year 42 5.
