MODEL BUILDING EXERCISE

As I am currently vice president in HR my future plan i want to buy an BMW

1. To buy a car i need to invest today for that i started investing 10,00,000 Ev
car so i choose to invest in mutual fund at 12% per annum.
2. As from the solution of 1st part its very clear i will not be able to meet cost
from my father. At 6% per annum so what wiil be the present value of that bo
3.How much I have to save every year if . If i have invested in a fund which w
saving at the end of each year.
4. If i take in consideration my bank account having rs 1000000 which earns
income of rs 800000 from my income my expenditure stands out to be 200000
be the amount at the end of 5 yrs in the bank for future date.

Solution 1
NO OF YEAR INVESTMENT COMPOUNDING ROI
1 8000000 5 12%
2 8000000 4 12%
3 8000000 3 12%
4 8000000 2 12%
5 8000000 1 12%
TOTAL

FUTURE VALUE 56921512.3456

Solution 2
Future value 1500000
 N 5
Rate of intrest 6%

PRESENT VALUE 1120887.25929909

Solution 3
Future value 8,000,000
Rate 11%
N 5

I will save rs 1284562.476 in case i started saving at the end of each year

Solution 4

Amount already 1000000

Intrest Rate 7%
Annual Income 800000
Annual expnditur 200000
Period 5

TIME PRESENT VALUE COMPOUNDING

1 600000 4
2 600000 3
3 600000 2
4 600000 1
5 600000 0
Total
Total Amount In Bank in future date 4852995.1367
ING EXERCISE

lan i want to buy an BMW for 80,00,000 after 5 years

ed investing 10,00,000 Every year to meet the down payment of
annum.
ll not be able to meet cost of the car so i will borrow 15,00,000
he present value of that borrowing today
nvested in a fund which will return 11% interest in case i started

g rs 1000000 which earns 7% interest and i have an annual

ure stands out to be 200000 and the rest goes in bank what will
ture date.

FUTURE VALUE
14098733.4656
12588154.88
11239424
10035200 So at the nd of 5 years i will save for 56921512.35 rs which will hel
8960000 me to buy BMW in future.
56921512.3456
 The present value of of borrowing today will be 1120887.259

(1+i)^N 1.6850581551 PMT= fv/(((1+i)^n-1

(1+i)^n-1 0.6850581551
((1+i)^n-1)/i 6.22780141
1+i 111%

PMT 1284562.476118

Future value of
Bank Amount 1402551.73

4852995.137 rs will the amount at the end of 5 yrs in the bank fo

FUTURE VALUE the future date.
786477.606
735025.8
686940
642000
600000
3450443.406
921512.35 rs which will help
PMT= fv/(((1+i)^n-1)/i)

e end of 5 yrs in the bank for