Loans have become an integral part of everyone’s life today and help us achieve some important life goals. Be it buying a car, buying a home or affording kids overseas education, loans play a vital role in our life.

EMI, which stands for equated monthly installment, is the monthly amount payments we make towards a loan we opted for. EMI payments include contributions towards both principal and interest on the loan amount. The interest component constitutes the major portion of the EMI payment in the initial stages. As we progress along the loan tenure, the portion of interest repayment reduces and contribution towards the principal repayment increases.

Loan amortization schedule is a tabular presentation of the loan with the EMI payment. It shows the break up between the interest component and principal component of a particular EMI payment. This schedule helps the investor to examine how the loan is being paid and how much outstanding loan is left to be paid. It contains information like time period of payment, EMI, interest, principal payment and the outstanding loan. In case the loan bear .

Interest calculations are of vital importance in banking as banks deal with the same on a daily basis involving variety products such as deposits and loans. Though calculations are done through computers it is essential to know the principles and rationale behind calculations of the same .

Aim of the course

• To understand the concepts of simple, compound interest.

• To understand the concepts of annuities and sinking funds.

• To know about mathematical calculations required for interest.

• To understand the calculations of equated monthly instalments.

• To understand the concept of annuities