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PRB 1to
PRB 1to
0.07 0 q1 q2 …...
0.0175 -10000
I invest in SBI Rs. 5000 every year for 5 yearsstarting from next year
interest rate is 7.25%
time line
future value
different compounding periods
annuities
regualr annuity
annuity due
9-Oct-23
3 4
4 YEARS FROM NOW
3 4
12250.43 yearly
3
12250.43 2100
12100 hy compounding
Future value
4 5 hy 6
?
9-Oct-23 9-Oct-24
4 5
-5000 -5000 ₹ 28,897.48
?
5000*1.0725^4 6615.4472
plus 5000*1.0725^3 6168.24914
plus 5000*1.0725^2 5751.28125
plus 5000*1.0725 5362.5
plus 5000 5000
28897.4776 ₹ 28,897.48
hy 10
-5000 ₹ 28,897.48
9-Oct-23 9-Oct-24
4 5
-5000 5000*1.0725^5
5000*1.0725^4
5000*1.0725^3
5000*1.0725^2
5000*1.0725^1 ₹ 30,992.54
₹ 30,992.54 ₹ 30,992.54
money received earlier is more valuable than money received after
0 1 2 3 4
300000
8%
PV
300000/1.08^4
220508.9558
A 0 1 2 3
7.50% 100000 100000 100000
?
100000/1.075 93023.26
100000/1.075^2 86533.26
100000/1.075^3 80496.06
B 0 1 2 3
100000 100000 100000
?
100000 100000
100000/1.075 93023.26
100000/1.075^2 86533.26
₹ 260,052.57
₹ 279,556.52
1
a ₹ 82,282.37 ₹ 82,282.37
b ₹ 236,801.16
c ₹ 164,281.60
d ₹ 161,243.14
2
a ₹ 203,051.57
b ₹ 134,345.53
c ₹ 411,642.90
d ₹ 457,112.42
5 ₹ 52,490.06 ₹ 52,490.06
6 ₹ 25,134.21 ₹ 27,396.29 ₹ 25,134.21 ₹ 27,396.29
₹ 27,396.29
7 ₹ 303,978.67
8 ₹ 411,140.73 ₹ 411,140.73
9 ₹ 705,139.05 ₹ 708,624.40 it is not worth to give to your friend
10 ₹ 338,923.66 ₹ 651,255.03
11 ₹ 348,667.72 ₹ 669,978.61
12 7.458% 7.458%
13 56.14206905 14.035517263 56.142069052 14.03551726
14 a ₹ 12,772.89
b ₹ 12,836.79
c ₹ 12,870.19
d ₹ 12,893.02
15 ₹ 19,661.44 ₹ 4,956.83 ₹ 19,661.44 ₹ 4,956.83
18 a 16.16% 16.16%
b 7.78% 0.1555383083
c 3.82% 0.152626454
d 1.26% 0.15072535
19 8.043231727 8.043231727
20 hy 15.74730184 7.8736509182 15.74730184
quar 31.15182971 7.7879574284 31.15182971
month 92.76576606 7.7304805054 92.76576606
21 12.52173913
22 12
23 7.93%
24 1.93% 0.0770910304 yearly
25 15.4219785
26 59.32609551 14.831523877
27 ₹ 90,674.38
28 ₹ 83,187.50
29 106.8059177 8.9004931385
30 ₹ 414,657.60 ₹ 652,770.05 ₹ 652,770.05
₹ 1,528,444.98
₹ 2,181,215.03
31 ₹ -9,309.77
33 ₹ 27,013.57
34 ₹ 156,194.20
39 d 1500
r 6%
p 25000
40 d1 4000
r 7%
g 1%
p 66666.666667
we discounted this on a quarterly interest basis the PV became low.
the final fihure would have been 276000 if the compounding had been quarterly. Since the compounding is half yearly, the final figure is lo
₹ 705,139.05 ₹ 708,624.40
₹ 338,923.66 ₹ 651,255.03
₹ 348,667.72 ₹ 669,978.61
₹ 1,471.46
₹ 208,174.49
half yearly, the final figure is lower.
I need money in the future
2024 4500000 payment of gratuity and other benefits
0 1 2 3 4 5
now 2024
₹ -3,062,624.39 4500000
16.08324 periods
0 1 2 3 4 5
-1
10
35.24%
end amt effective int rate
1000 1 year 12% annual 1120 0.12
1000 0.1236
1000
1000
effective int rate
RULE OF 72
1000 2000
5years
14.4 14.87%
6 6.1162553742
4 years 40lakhs
0 1 2
x x
pmt 887683.22 y y y
₹ -887,683.22
method 1 0 1 ₹ 2.00 3
100000
int -10000 -10000 -10000
princi -100000
method 2 0 1 2 3
100000
principal -33333.33 -33333.33 -33333.33
int -10000 -6666.67 -3333.33
method 3 0 1 2 3
100000
int+princi z z z
₹ 40,211.48
sinking fund
Lender name:
Pmt. Payment Date Beginning Balance Scheduled Extra Payment Total Payment Principal Interest Ending Balance Cumulative Interest
No. Payment