You save Rs. 20000 a year for first 5 years, and Rs. 30000 a year for next 10 years thereafter. How much these savings will grow into? Assume a rate of interest of 10% p.a.

Please calculate this question in Excel and send me the steps ??

1 Answer(s)


Enter the amount of investment in the first column year wise. In the next column make the cumulative sum of each row. Then apply the interest % on the cumulative sum for each year.

For eg:
Column A B C D
Year Investment Cumulative Investment Interest @ 10%
1 20000 20000 2000
2 20000 40000 4000
and so on
15 30000 400000 40000

So the total savings including interest grows to 4,40,000 at the end of 15 years.