The EMI on a loan of amount Rs. P at a rate of i% per period for n periods is computed by:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → $\frac{P . i}{1-(1+i)^{-n}}$
$\text{EMI} = P \cdot \frac{r(1+r)^n}{(1+r)^n - 1}$
$\text{where } r = \frac{i}{100}$
$\text{EMI formula: } P \cdot \frac{r(1+r)^n}{(1+r)^n - 1}$