EMI stands forEquated Monthly Installment. It refers to a fixed amount paid by a borrower every month over a fixed period on a loan. It includes both principal and interest. The basic mathematical formula forEMI calculationis: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N...
Let’s take an example to understand the calculation of the Time Value of Money formula in a better manner. You can download this Time Value of Money Formula Excel Template here –Time Value of Money Formula Excel Template Example #1