A 3-year loan at 9% a year is repaid monthly by the reducing-balance method. What are $i$ and $n$ in the EMI formula?

Explanation

1. 01

   Both must be per instalment period, a month: $i = \frac{0.09}{12} = 0.0075$.

2. 02

   There are $3 \times 12 = 36$ monthly instalments: $n = 36$.