7/23/2019 Minicase - Chapter 6

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MINICASE--1

Solution:

1. How much money would Ramesh need 15 years from now?

500,000 x PVIFA (10, 15years!

" 1,000,000 x PVIF (10, 15years!

# 500,000 x $.%0% " 1,000,000 x 0.&'

# ',)0',000 x &',000

# Rs.*,0*&,000

&. How much money should Ramesh sa+e each year for he nex 15 years o -e a-le o

mee hs n+esmen o-/ec+e?

Rameshs curren caal of Rs.%00,000 wll 2row o 3

%00,000 (1.10!15 # %00,000 x *.1$$ # Rs &,50%,&00

4hs means ha hs sa+n2s n he nex 15 years mus 2row o 3

*,0*&,000 &,50%,&00 # Rs 1,5'5,)00

6o, he annual sa+n2s mus -e 3

  1,5'5,)00 1,5'5,)00

  # # Rs.*),'')

FVIFA (10, 15 years! '1.$$&

'. How much money would Ramesh need when he reaches he a2e of %0 o mee hs

donaon o-/ec+e?

&00,000 x PVIFA (10 , 'yrs! x PVIF (10, 11yrs!

# &00,000 x &.*)$ x 0.'1$ # 15$,%$%

*. 7ha s he resen +alue of Rameshs lfe me earnn2s?

  *00,000 *00,000(1.1&! *00,000(1.1&!1*

  *%

  1 & 15

  1.1& 15

  1

1.0)

  # *00,000

0.0) 0.1&

# Rs.$,&5*,%&

7/23/2019 Minicase - Chapter 6

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