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What is the formula for calculating my returns if I invest Rs 5000 every month for 25 years and get a return of 15% per annum compounding annually/ monthly.

2007-03-08 00:14:04 · 2 answers · asked by Dr Sushil Jain 1 in Business & Finance Personal Finance

2 answers

A financial claculator would help you out a lot. Or a spreadsheet.

To calculate it longhand, you would need to determine the future value of each individual cash flow. So I'll do the first two...you can take it from there.

Month 1:

Cash Flow: 5000
# of months to compound: 25*12 = 300
Monthly Return: 15%/12 = 1.25%

Future Value = 5000 * 1.0125^300 = 207,720.60

Month 2:

Cash Flow 5000
# of months to compound: 299

Future Value: 5000 * 1.0125^299 = 205,156.15

And so on. When you get done, add all of the future vales together and subtract 1,500,000 because that will be contributed capital. Whatever is left is your returns.

2007-03-08 00:25:03 · answer #1 · answered by BosCFA 5 · 0 0

it truly is luck. you won't be able to score more suitable marks until eventually you in actual truth study and artwork flat out in exam. yet you are able to make funds, if luck chortle at you. luck play significant function, in case of having funds. someone born with golden spoon, while some one in hut. Its luck. you are able to earn usual month-to-month income, presented you've have sufficient funds, journey in commerce and through understand-how of the market. jointly you ought to have persistence. that you'll to make investments income percentage market yet you are able to desire more suitable liquid funds. attempt your luck with Rs.5000. study the market. it is going to advantages you. save it up.

2016-12-05 09:59:32 · answer #2 · answered by ? 4 · 0 0

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