I am working on the EMI calculator module as part of the current banking project. I find answers for calculating simple interest, EMI, and even tenure but not able to find a formula to calculate the total amount borrowed. I found the below formula to calculate what I want but that is incorrect
source: Find Loan Amount using parameters ROI and Tenure
Here are the loan details,
Monthly EMI: 32530,
Loan tenure: 5 years,
Interest: 10.90
Total loan amount: ?
What is the formula to find the total loan amount?
What i have tried,
Here is the formula i have taken from the below source,
Here is the source
Here is the problem on editor
The general formula is
$$PV=r\cdot \frac{\left(1+\frac{i}{m}\right)^{n\cdot m}-1}{\frac{i}{m}\cdot \left(1+\frac{i}{m}\right)^{n\cdot m}},$$
where $m=12 \, \textrm{(monthly)}, i=0.109$, $n=5$=number of years and $r=32530$ is the EMI (equated monthly installment). With the given numbers the term becomes
$$PV=32530\cdot \frac{\left(1+\frac{0.109}{12}\right)^{5\cdot 12}-1}{\frac{0.109}{12}\cdot \left(1+\frac{0.109}{12}\right)^{5\cdot 12}}=1.4996... \, \textrm{million}\approx 1.5 \, \textrm{million}$$
Here is the result of an online-calculator.