How much should you deposit every year in a bank account to receive taka 1,00,00 after 5 years if the annual interest rate is 12%?
Created: 6 years ago |
Updated: 1 month ago
best des
FV=p×r(1+r)n−1
Where:
- FV is the future value (Taka 1,00,000 in this case),
- P is the annual payment (the amount you deposit every year),
- r is the annual interest rate (expressed as a decimal, so 12%=0.12),
- n is the number of periods (5 years in this case).
Plugging in the values:
1,00,000=P×0.12(1+0.12)5−1
1,00,000=P×0.12(1.12)5−1
Now, calculate (1.12)5:
(1.12)5≈1.76234
1,00,000=P×0.121.76234−1
1,00,000=P×0.120.76234
1,00,000=P×6.35283
Now, solve for P:
P=1,00,000/6.35283
P≈15,741.01
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