Virtual University of Pakistan Study forum !
Question # 1:
If you wish to have Rs.1, 000,000 on the retirement at the age of 60, what will you need to invest this year if you are 40 and you earn 8%?
Question # 2:
Rizwan invests Rs.100,000 at the end of each year for four years in an account that pay interest at 9% , compounded annually. How much money would Rizwan has in the account at the end of the four years?
solution of MTH-302 GDB 1
|No of payments||4.00|
|Payment per period|
|Accumulated Value = Payment per period * AF|
|GDB Q-1||If you wish to have Rs.1, 000,000 on the retirement at the age of 60, what will you need to invest this year if you are 40 and you earn 8%|
|No of Payments||20|
|Accumulated Factor= AF||45.76|
|Desired Accumulated Value=AV||1,000,000|
|Payment per Period = AV/AF|
|ANS||Payment per Period||21852.21|
how to count Accumulated factor AF??
Accumulation Factor (AF) = ((1+i)^n-1)/i