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Sfm: interest and principal from emi/eai

CA Final 627 views 1 replies

How to seperate interest and principal portion from EMI/EAI.

Through, PVAF and PV formula, we can find out EAI/EMI,

How can we split principal portion and interest portion from this EAI and EMI

Replies (1)

Loan Amt. = Rs.10,00,000     Time = 3 yr     ROI = 10%

EAI * PVAF(10%, 3) = 10,00,000

EAI * 2.48685 = 10,00,000

EAI = 4,02,115

Year Principal O/S Beg. Interest @ 10% EAI Principal Paid
1 10,00,000 1,00,000 4,02,115 3,02,115
2 6,97,885 69,788.50 4,02,115 3,32,326.50
3 3,65,558.50 36,556.50 4,02,115 3,65,558.50

 

 

 

 


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