EMI stands for Equated Monthly Installment. It is a fixed amount paid by a borrower to a lender at a specified date each calendar month. The EMI includes both principal and interest components.
EMI is calculated based on the loan amount, interest rate, and loan tenure. The formula used is:
EMI = (P * r * (1 + r)^n) / ((1 + r)^n - 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months.
The return on investment (ROI) is the gain or loss made on an investment relative to the amount of money invested. It is calculated using the formula:
A = P * (1 + r)^t, where P is the principal amount, r is the annual interest rate, and t is the number of years.
Loan interest is calculated based on the loan amount, interest rate, and tenure. You can use an EMI calculator to check the exact monthly interest and principal repayments.