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  • Module 11 - Chapter 1 Example Sister

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    Rohan Ajith
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    This document describes the savings of three sisters over 65 years, with an initial capital of $50,000 earning 12% annual interest. Sister 1 starts saving at age 20, while Sisters 2 and 3 start at age 28. By age 65, Sister 1 has accumulated total savings of $4.89 crores, Sister 2 has $1.98 crores, and Sister 3 has $3.05 crores due to differences in the duration and compounding of their investments.

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    About the different compounding methods

    Original Title

    Module 11- Chapter 1 Example Sister

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    This document describes the savings of three sisters over 65 years, with an initial capital of $50,000 earning 12% annual interest. Sister 1 starts saving at age 20, while Sisters 2 and 3 start at age 28. By age 65, Sister 1 has accumulated total savings of $4.89 crores, Sister 2 has $1.98 crores, and Sister 3 has $3.05 crores due to differences in the duration and compounding of their investments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views4 pages

    Module 11 - Chapter 1 Example Sister

    Uploaded by

    Rohan Ajith
    This document describes the savings of three sisters over 65 years, with an initial capital of $50,000 earning 12% annual interest. Sister 1 starts saving at age 20, while Sisters 2 and 3 start at age 28. By age 65, Sister 1 has accumulated total savings of $4.89 crores, Sister 2 has $1.98 crores, and Sister 3 has $3.05 crores due to differences in the duration and compounding of their investments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    The 3 Sister savings problem

    Capital 50,000
    Yearly Rt 12.00%

    Savings :
    Birthday Sister 1 Sister 2 Sister 2
    20 50000 Spend Spend
    21 50000 Spend Spend
    22 50000 Spend Spend
    23 50000 Spend Spend
    24 50000 Spend Spend
    25 50000 Spend Spend
    26 50000 Spend Spend
    27 50000 Spend Spend
    28 50000 50000 50000
    29 Spend 50000 50000
    30 Spend 50000 50000
    31 Spend 50000 50000
    32 Spend 50000 50000
    33 Spend 50000 50000
    34 Spend 50000 50000
    35 Spend 50000 50000
    36 Spend 50000 50000
    37 Spend Spend 50000
    38 Spend Spend 50000
    39 Spend Spend 50000
    40 Spend Spend 50000
    41 Spend Spend 50000
    42 Spend Spend 50000
    43 Spend Spend 50000
    44 Spend Spend 50000
    45 Spend Spend 50000
    46 Spend Spend 50000
    47 Spend Spend 50000
    48 Spend Spend 50000
    49 Spend Spend 50000
    50 Spend Spend 50000
    51 Spend Spend 50000
    52 Spend Spend 50000
    53 Spend Spend 50000
    54 Spend Spend 50000
    55 Spend Spend 50000
    56 Spend Spend 50000
    57 Spend Spend 50000
    58 Spend Spend 50000
    59 Spend Spend 50000
    60 Spend Spend 50000
    61 Spend Spend 50000
    62 Spend Spend 50000
    63 Spend Spend 50000
    64 Spend Spend 50000
    65 Spend Spend 50000
    Growth in savings Total Savings (INR Crs)
    Sister 1 Sister 2 Sister 3 Sister 1 4.89
    8,199,380 --- NA --- --- NA --- Sister 2 1.98
    7,320,875 --- NA --- --- NA --- Sister 3 3.05
    6,536,496 --- NA --- --- NA ---
    5,836,157 --- NA --- --- NA ---
    5,210,854 --- NA --- --- NA ---
    4,652,549 --- NA --- --- NA ---
    4,154,061 --- NA --- --- NA ---
    3,708,983 --- NA --- --- NA ---
    3,311,592 3,311,592 3,311,592
    --- NA --- 2,956,779 2,956,779
    --- NA --- 2,639,981 2,639,981
    --- NA --- 2,357,126 2,357,126
    --- NA --- 2,104,577 2,104,577
    --- NA --- 1,879,086 1,879,086
    --- NA --- 1,677,756 1,677,756
    --- NA --- 1,497,996 1,497,996
    --- NA --- 1,337,497 1,337,497
    --- NA --- --- NA --- 1,194,193
    --- NA --- --- NA --- 1,066,244
    --- NA --- --- NA --- 952,004
    --- NA --- --- NA --- 850,003
    --- NA --- --- NA --- 758,931
    --- NA --- --- NA --- 677,617
    --- NA --- --- NA --- 605,016
    --- NA --- --- NA --- 540,192
    --- NA --- --- NA --- 482,315
    --- NA --- --- NA --- 430,638
    --- NA --- --- NA --- 384,498
    --- NA --- --- NA --- 343,302
    --- NA --- --- NA --- 306,520
    --- NA --- --- NA --- 273,678
    --- NA --- --- NA --- 244,356
    --- NA --- --- NA --- 218,175
    --- NA --- --- NA --- 194,799
    --- NA --- --- NA --- 173,927
    --- NA --- --- NA --- 155,292
    --- NA --- --- NA --- 138,654
    --- NA --- --- NA --- 123,798
    --- NA --- --- NA --- 110,534
    --- NA --- --- NA --- 98,691
    --- NA --- --- NA --- 88,117
    --- NA --- --- NA --- 78,676
    --- NA --- --- NA --- 70,246
    --- NA --- --- NA --- 62,720
    --- NA --- --- NA --- 56,000
    --- NA --- --- NA --- 50,000

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