MANAN KHURANA

CAT Preparation Community 4y ago

Can someone please explain the logic behind the formula to calculate "principal paid in equal instalments"? {(x/(1+r%) + x/(1+r%)^2 + ..... + x/(1+r%)^n = P} I avoid using this formula for shorter durations like 2-3 periods because I can't remember it, but for longer durations of time (for eg: 8 periods), it becomes almost impossible to solve without the formula?