In order to determine the EMI of loan of Rs 55,000, use the following formula:
[tex]A=P(1+\frac{r}{100})^n[/tex]where,
r: interest rate = 5%
P = 55,000
n: 5
Replace the previous values of the parameters into the formula for P:
[tex]\begin{gathered} A=55,000(1+\frac{5}{100})^5 \\ A=55,000(1+0.05)^5 \\ A=55,000(1.05)^5 \\ A\approx70,195.48 \end{gathered}[/tex]Hence, the EMI of loan is approximately Rs. 70,195.48
