How to calculate interest component of monthly EMI payment


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A loan of Rs. 50,000 has EMI of Rs. 5500. What is the interest component of first payment. Rate of interest is 12% p.a.

Rs. 5,000


Rs. 4,500


Rs. 5,500


Can't say because the tenure of the loan is not given


IN THIS QSN LOAN AMOUNT SHOULD BE 500000 INSTEAD OF 50000

1 Answer(s)


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Yes, you're right. The loan amount should be 5 lacs. We'll correct it. However, if you get question like, what would be the principal amount of the first payment, the answer would be Rs. 5000.