every year Rs.5000
rate of interest is 8%
compounded annually
period 30 years
2006-12-04 20:18:00 · 4 answers · asked by Prakash Y 1 in Business & Finance ➔ Personal Finance
Look into a discount table find future value investment factor of Annuity fo 30 years at 8% and multiply that figure by 5000 and you will get the answer.
A second method very laborious is for each year look into the same discount table,
multiply 5000 by future value interest factor firs for 30 years, next for29 years till 1year for 8% and add them together.
eg for two years
5000xfvif for 30years,8% + 5000 fvif for 29 years at 8%+........till 1year.
fvif is future value interest factor not annuity. Annuity means equal amounts.
The third long route is again multiplying 5000 by (1+0.08)^30+5000(1+0.08)^29+.....upto year last.
2006-12-05 04:06:16 · answer #1 · answered by Mathew C 5 · 1⤊ 0⤋
This is very simple math man!!
A = P ( 1 + R / 100 ) ^ Years
P = 5000, R = 8, Years = 30
A = 5000 ( 1 + 8/100) ^ 30 => Rs 50,313 /-
" ^ " is Power / Exponential
Make use of the above formula, when ever you need to do such calculations.
2006-12-08 23:13:50 · answer #2 · answered by maheshexp 2 · 0⤊ 0⤋
to bizin pran to calculatrice ek comtee mo croire!!!
2006-12-05 04:25:42 · answer #3 · answered by Tim 2 · 0⤊ 1⤋
it would amount to 50313.28
2006-12-05 04:57:05 · answer #4 · answered by engineerdp 1 · 0⤊ 2⤋