UNIT 2

                        I B.COM 

                                        UNIT-2 

EMI

Equated Monthly Instalment(E.M.I)

Equated Monthly Instalment is also as

equivalent as the instalment scheme but with a dimnishing concept. We have to repay the cost of things with the interest along with certain charges.

The total amount received should be divided by the period of months. The amount thus arrived is known

as Equated Monthly Instalment.

Equated Monthly Instalment(E.M.I)= principal interest 

Number of months.  The cost of computer is Rs 20,000. the 

company offers it in 36 months, but charges 10% interest. Find the monthly instalment the purchaser has to pay.

Solution:

Given :-

P= 20,000; r= 10; Period= 36 months(3 

years)

Total Interest= 𝑝𝑛𝑟

100

=

20000𝑋 10𝑋 3÷

100

= 6,000

Total amount to be paid= 

Principal Value + interest

= 20,000+6,000

= 26,000 Monthly Instalment = 

principal: interest

Number of months 

= 

26000 ÷ 36

= 722.22 

                         Thank you

SATHISH KUMAR K

23UCM030