The given sheet is a simple example of the subject matter and by this you can easily understand that what is the methodology is being adopted for calculation of installment. actually it is the implication of PV Factor that we used for calculation.
Following steps are used for calculation:
1. Calculate Commutative PV factor for given period on the basis of ROI and repayment period i.e. Monthly or Qtr.
PV Factor: PV factor is calculate by following formula
(1/(1+r)) here r is ROI on the basis of repayment condition i.e. monthly or quarterly or any other.
2. Divide principle amount with the outcomes of first step and answer is the installment which you have to pay for your loan amount.
Hope this will use full to all of you.
Submitted by – Yogesh Kumar Gupta