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Video instructions and help with filling out and completing When Form 2220 Installment

Instructions and Help about When Form 2220 Installment

Hello everyone and welcome back to Ellenmarkets.com YouTube channel. Well, of course, we take loans for several purposes, maybe a home loan or for buying a motor vehicle, etc., and we have to pay that amount in two installments. Of course, that installment valve carries two elements, which is principal and interest. Now, in a blog, write tips if you will see on our website, we have written as to what is EMI and how do we calculate it. But practically, in this video, we will understand as to how to calculate the repayment schedule, that is the equated monthly payment schedule. So, let us understand quickly with the help of an excel sheet. Let us understand the calculation of EMI with the help of an excel sheet. Suppose the loan amount here is two lakh rupees. The tenure of the loan, that is the time within which you have to pay the loan, is one year, and you pay monthly for it, so the number of payments per year is 12. Suppose the rate of interest is 18 percent. So, this rate of interest is per annum. We will calculate the rate of interest per month, which is 18 percent divided by 12. Now, the next question is how do we calculate the monthly payment? Monthly payment is the function of PMT. So, if you type PMT on the Excel, open the bracket, you will see the following features on your excel sheet. So, this is the rate for that you need to click on the rate comma. Next is the nper, which means number of payments. Next is the present value of the loan taken. Type which can be kept as and then the bracket is to be closed. You will see that the balance that comes in...