Question

Person: ABC
Age:25
Retirement age: 60
Amount saved: Rs. 48,000 every year
Use MS Excel/Google Sheets formulas to calculate the total amount accumulated (from age 25 to
age 60, ie 35 years) in the following cases:
1. Not invested
2. Invested in Fixed Deposits, at 5% annual returns
3. Invested in Equity Mutual Funds, at 12% annual returns
Plot all 3 on a graph (preferably a single line graph with each line representing a different scenario)
Note: Adjusting values for inflation is not required, but can be done separately for extra credit
Hint: For scenario 3,
Start of year 1: Amount=48,000
Start of year 2: (48,000+12% of 48,000)+48,000

Answer 1

NAswer:

Number of Years N=35

Annual deposit A=48000

A)

When there is no investment than total amount after 35 years P=N*A=35*48000=1680000

B)

When there is investment in fixed deposit at rate of 5% so

r=5%

Total amount after 35 years P=A*((1+r)^N-1)/r =48000*((1+5%)^35-1)/5%=$4335374.75

C)

When there is investment in equity mutual fund at rate of 12% so

r=12%

Total amount after 35 years P=A*((1+r)^N-1)/r =48000*((1+12%)^35-1)/12%=$20719847.83

year	No Investment	Fixed Deposit	Equity mutual Fund
1	48000	48000.00	48000
2	96000	98400.00	101760
3	144000	151320.00	161971.2
4	192000	206886.00	229407.744
5	240000	265230.30	304936.6733
6	288000	326491.82	389529.0741
7	336000	390816.41	484272.563
8	384000	458357.23	590385.2705
9	432000	529275.09	709231.503
10	480000	603738.84	842339.2833
11	528000	681925.78	991419.9973
12	576000	764022.07	1158390.397
13	624000	850223.18	1345397.245
14	672000	940734.34	1554844.914
15	720000	1035771.05	1789426.304
16	768000	1135559.60	2052157.46
17	816000	1240337.59	2346416.355
18	864000	1350354.46	2675986.318
19	912000	1465872.19	3045104.676
20	960000	1587165.80	3458517.237
21	1008000	1714524.09	3921539.306
22	1056000	1848250.29	4440124.022
23	1104000	1988662.81	5020938.905
24	1152000	2136095.95	5671451.574
25	1200000	2290900.74	6400025.763
26	1248000	2453445.78	7216028.854
27	1296000	2624118.07	8129952.317
28	1344000	2803323.97	9153546.595
29	1392000	2991490.17	10299972.19
30	1440000	3189064.68	11583968.85
31	1488000	3396517.91	13022045.11
32	1536000	3614343.81	14632690.52
33	1584000	3843061.00	16436613.39
34	1632000	4083214.05	18457006.99
35	1680000	4335374.75	20719847.83