This tool will help you easily calculate the Loan Repayment Installments (LRI) based on your loan amount, interest rate, and repayment period.
LRI Calculator Explanation
The LRI (Loan Repayment Interest) Calculator helps you to understand how much your investment or loan will grow over time with compound interest. Here’s how it works:
How to Use It
- Enter the Principal (P), which is the initial amount of money invested or loaned.
- Input the Annual Interest Rate (r) as a percentage.
- Enter the Number of Times Interest is Applied per Year (n). Typically, this can be annually (1), semi-annually (2), quarterly (4), monthly (12), etc.
- Enter the Time the Money is Invested for (t) in years.
- Click the Calculate button to see the result, which shows the accumulated amount including interest.
How It Calculates the Results
The formula used by this calculator is the compound interest formula:
A = P(1 + r/n)^(nt)
where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit or loan amount)
r = the annual interest rate (decimal)
n = number of times that interest is compounded per unit t
t = the time the money is invested for in years
Limitations
This calculator assumes a fixed interest rate and does not account for any fees, taxes, or alterations in the interest rate. It also assumes that interest is compounded at regular intervals as specified by ‘n’. For real-world financial advice, please consult a professional.