You have just celebrated your twentieth birthday and you believe you will spend Rs 120,000 a year for 20 years once you retire at the age ofsixty. If the interest rate is 10% per annum, how much must you save each year until retirement to support your consumption pattern after retirement? Assume that annual savings start one year from now.
You have just celebrated your twentieth birthday and you believe you will spend Rs 120,000 a year for 20 years once you retire at the age ofsixty. If the interest rate is 10% per annum, how much must you save each year until retirement to support your consumption pattern after retirement? Assume that annual savings start one year from now.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 35P
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You have just celebrated your twentieth birthday and you believe you will spend Rs 120,000 a year for 20 years once you retire at the age of
sixty. If the interest rate is 10% per annum, how much must you save each year until retirement to support your consumption pattern after retirement? Assume that annual savings start one year from now.
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