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I'm trying to find out Loan Amount taken for my 1-year old purchased bike from the bank.

I know my EMI, ROI (Rate of interest) and Tenure.

EMI = 2924, Tenure = 24 Months, ROI = 10.5%

Note: This is Flat Rate not Diminishing interest rate.

Please help me with the formula to find out the Loan amount taken.

Thanks

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  • $\begingroup$ The formula is $2924\cdot\frac{(1+\frac{0.105}{12})^{24}-1}{\frac{0.105}{12}\cdot (1+0.105/12)^{12}} =69,998.1\approx 70,000$ . Give a reply if something is still unclear. $\endgroup$ – callculus Jan 6 at 18:05
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Hint: use the equation $$F = A*\dfrac {(1+\frac {i}{m})^t - 1}{\frac {i}{m}(1+\frac {i}{m})^m}$$ where $P = \text {total loan amount} \\ A = \text {EMI (monthly payment)} \\ i = \text {interest} \\ m = \text {type of installment (12 = monthly, 1 = annually)} \\ t = \text {tenure (time)}$

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  • $\begingroup$ You´re completely off the track. $\endgroup$ – callculus Jan 6 at 18:16
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    $\begingroup$ Yup...missed it by a country mile. $\endgroup$ – bjcolby15 Jan 7 at 0:34
  • $\begingroup$ Funny. I appreciate that you´ve corrected it. $\endgroup$ – callculus Jan 7 at 11:18
  • $\begingroup$ The original equation I used what for simple interest. I used your example to get the correct equation. $\endgroup$ – bjcolby15 Jan 7 at 12:51

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