To solve this using a financial calculator, we can do a four step approach. Step 01 : Find the adjusted interest rate (1 + rate of return / 1 + rate of growth) - 1 = 1.07/1.03 - 1 = .03883495 Multiply that by 100 to get the interest rate in the format that the calculator will accept, i.e, .03883495 x 100 = 3.883495% Enter this as I (interest) in the calculator. Step 02 : Enter TVM variables PMT = 80,000 N = 36 Step 03: Calculate for PV. I get -1,537,373.637 Step 04 : Divide it using the growth rate factor -1,537,373.637 / 1.03 = -1,492,595.764
To solve this using a financial calculator, we can do a four step approach.
Step 01 : Find the adjusted interest rate
(1 + rate of return / 1 + rate of growth) - 1 = 1.07/1.03 - 1 = .03883495
Multiply that by 100 to get the interest rate in the format that the calculator will accept, i.e, .03883495 x 100 = 3.883495%
Enter this as I (interest) in the calculator.
Step 02 : Enter TVM variables
PMT = 80,000
N = 36
Step 03: Calculate for PV. I get -1,537,373.637
Step 04 : Divide it using the growth rate factor
-1,537,373.637 / 1.03 = -1,492,595.764
Needed this refresher. Thanks sir!
what is the corpus created if you increase SIP by 5% per year? can u solve such problem using Ba2?
Thank you for the videos Professor, can you please share the cheat sheet.
Happily. You can reach out to stelkphd@gmail.com and I can share the cheat sheet and formulas.
can i get the cheat sheet
Happily. You can reach out to stelkphd@gmail.com and I can share the cheat sheet and formulas.