Find Loan Amount using parameters ROI and Tenure

Question

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

bjcolby15 · Answer 1 · 2019-01-07T02:11:11.920

1

Hint: use the equation $$F = A*\dfrac {(1+\frac {i}{m})^t - 1}{\frac {i}{m}(1+\frac {i}{m})^m}$$ where $P = \text {total loan amount} \\ A = \text {EMI (monthly payment)} \\ i = \text {interest} \\ m = \text {type of installment (12 = monthly, 1 = annually)} \\ t = \text {tenure (time)}$

edited Jan 07 '19 at 02:11

answered Jan 06 '19 at 12:31

bjcolby15

3,599

You´re completely off the track. – callculus42 Jan 06 '19 at 18:16
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Yup...missed it by a country mile. – bjcolby15 Jan 07 '19 at 00:34
Funny. I appreciate that you´ve corrected it. – callculus42 Jan 07 '19 at 11:18
The original equation I used what for simple interest. I used your example to get the correct equation. – bjcolby15 Jan 07 '19 at 12:51

Find Loan Amount using parameters ROI and Tenure

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