FV = 10000000

N = 35×12 = 420

i/y = 12/12 = 1

PMT =? (Begin mode)

Answer: 1540

i got another ans= -1814.60

set-b N-35*12 I-12% PV -0 PMT=? [SOLVE = – 1814.60] FV=10000000 P/Y=12 C/Y =1

if the interest rate is comp. monthly then ans = 1540.

set-b N-35*12 I-12% PV -0 PMT=? [SOLVE = – 1814.60] FV=10000000 P/Y=12 C/Y =12

where say question interest is comp. monthly.

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If you want 1crore rupees after 35 year, what amount of money will you have to invest from today? (Assume rate of return as 12% p.a.)

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the problem you mentioned is an old one, ie it is solved according to old method of calculation of monthly rate of compounding- dividing the intrerest rate by 12 simply. But in your method what you have taken is effective rate of compounding- ie 11.386. This is the method prescribed by FPSB now.

In the solution if you replace i= 12/12 by 11.386/12, you get your answer. So treatment of rate of interest for the month is the cause for difference in the answers. ]]>

Sir,

If we Solve this by Calculator,

Set: Begin, n=35*12, I = 12, FV = 10000000 , pmt = (Solve) -1814.60 , P/Y =12, C/Y = 1

]]>Dear Darshan,

1540 is the correct answer.

Request you to show your method.

Prashant.

]]>In the 1st Question above regarding monthly invest to be made the answer should be 1814.60 plz let me know if I m correct. ]]>