A loan of ₹1,00,000 at 1% a month is repaid by EMIs of ₹8,886. How much of the first EMI goes to repay the loan itself?

Explanation

1. 01

   The first month's interest is 1% of the whole loan: $1{,}00{,}000 \times 0.01 = 1{,}000$.

2. 02

   The rest of the EMI, $8{,}886 - 1{,}000 = 7{,}886$ rupees, repays the loan.