I have 2 Questions:
For EMI we have:
Excel Formula: =PMT(rate, number_of_periods, present_value)
Maths Fromula: = P*r*(1+r)^n/((1+r)^n-1)
QUESTION 1: Keeping the principal amount & interest tenure as same, I want to calculate the interest rate if we change the EMI to 9000.
For Interest Rate:
Excel Formula: ?
Maths Fromula: ?
(Till now, I have used the GOAL SEEK of What If Analysis to achieve the Interest Rate)
QUESTION 2: Recently, I learned about EMI calucations so wanted to tally it with real applications.
So I came across the Apple's website where there are multiple EMI options, so I wanted to get the numbers by myself.The iphone costs ₹1,99,900 and they are giving ₹6000 discount in all credit card payments (whether EMI or one-off both) so in all cases of credit card payments there is at least ₹6000 savings so principal amount gets 1,93,900.
For 9 Months:
EMI: ₹22,913
Total Amount: ₹2,06,219
Savings: ₹6000
Our calculations EXACTLY match it:
For 6 Months (NO COST EMI):
EMI: ₹32,317
Total Amount: 1,93,899
Savings: ₹6000 + ₹8209
Our calculations EXACTLY match it:
But what doesn't match is the savings they have mentioned, obviously considering the total EMI interest as savings we get ₹8,571 but according to them it is ₹8209. Can you please explain how did they come up with ₹8209 ? (using goal seek for ₹8209 interest the principal is ₹1,85,691)
Google Sheet Link: https://docs.google.com/spreadsheets/d/1bQFYfOE7O16lp-sW2DWCibwedszkshuTmOhX2BAqj5Q/edit?usp=sharing