Q.A loan of ₹1,80,000 is taken at 12% per annum, to be repaid over 18 monthly instalments. Find the EMI and the total interest paid over the loan's tenure.

Apply the EMI formula, then find the total interest as $n\times\text{EMI}-P$.

$(1.01)^{18}=1.196147$.

$\text{EMI}=\dfrac{1{,}80{,}000\times0.01\times1.196147}{0.196147}\approx10{,}976.77$ …

Here $P=₹1{,}80{,}000$, annual rate $12\%$ so $r=0.01$, tenure $n=18$ months.

Step 1 — Compute $(1+r)^n$. $(1.01)^{18} = 1.196147$.

Step 2 — Apply the EMI formula.

Step 3 — Total repaid and total interest.

$\text{Total repaid} = 18\times10{,}976.77 = ₹1{,}97{,}581.86$ …

Confusing this chapter's total-interest figure with the total-interest figure from a Fixed/Recurring Deposit calculation in the previous chapter is a conceptual mix-up worth avoiding — an FD/RD's interest is money the depositor receives, while an EMI loan's total interest is money the borrower pays; …