# How to calculate the maturity value

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#### Guest

I have tried many times with functions pv(), fv(), etc to solve the following
problems but unable to get required result. I think that I am unable to
understand the financial functions properly. Could any one help me by giving

Problem 1:
Investment: Rs. 1000
Rate of Interest: 8.41% compounded yearly. Deposit doubles in 8 years 7
months.
Amount Payable, on a certificate of Rs. 1000
Term of Encashment Amount Payable
After 030 months 1170.51
After 036 months 1207.95
After 042 months 1267.19
After 048 months 1310.80
After 054 months 1355.90
After 060 months 1435.63
After 066 months 1488.49
After 072 months 1543.30
After 078 months 1649.13
After 084 months 1713.82
After 090 months 1781.06
After 096 months 1850.93
After 102 months 2000.00

Problem 2:
Investment: Rs. 10000
Rate of Interest: Interest 8% is compounded half-yearly and paid after the
maturity period of 6 years alongwith the principal. Rs. 1000 shall become Rs.
1601 on maturity.

Interest accrued each year on a certificate of Rs. 10,000 are as follows:

Financial year Amount Payable
2005-06 -
2006-07 816
2007-08 883
2008-09 955
2009-10 1033
2010-11 1117
2011-12 1208

I need a function which automatically show the maturity value of an
Investment:
a) Rs. 1000 pm for 20 years
b) Rs. 1000 pa for 20 years

In both cases I need a function/formula which automatically show the
maturity value of an Investment:
a) Rs. 1000 for 20 years
b) Rs. 1000 pm for 20 years
c) Rs. 1000 pa for 20 years

Regards

Hi RushatiINDIA,

For problem 1:
=FV(8.41%,8+7/12,0,-1000,0)
compounding interest of 8.41%pa, calculated annually over 8 years & 7 months.
To calculate over 20 years:
=FV(8.41%,20,0,-1000,0)

For problem 2:
=FV(8%/2,6*2,0,-1000,0)
compounding interest of 8%pa, calculated half-yearly over 6 years.
To calculate over 20 years:
=FV(8%/2,20*2,0,-1000,0)
Note that the periodic interest rate is half the annual interest rate and the
number of periods is twice the number of years.

To calculate problem 2 over 20 years with interest calculated monthly:
=FV(8%/12,20*12,0,-1000,0)

Cheers
--
macropod
[MVP - Microsoft Word]

| I have tried many times with functions pv(), fv(), etc to solve the
following
| problems but unable to get required result. I think that I am unable to
| understand the financial functions properly. Could any one help me by giving
|
| Problem 1:
| Investment: Rs. 1000
| Rate of Interest: 8.41% compounded yearly. Deposit doubles in 8 years 7
| months.
| Amount Payable, on a certificate of Rs. 1000
| Term of Encashment Amount Payable
| After 030 months 1170.51
| After 036 months 1207.95
| After 042 months 1267.19
| After 048 months 1310.80
| After 054 months 1355.90
| After 060 months 1435.63
| After 066 months 1488.49
| After 072 months 1543.30
| After 078 months 1649.13
| After 084 months 1713.82
| After 090 months 1781.06
| After 096 months 1850.93
| After 102 months 2000.00
|
|
| Problem 2:
| Investment: Rs. 10000
| Rate of Interest: Interest 8% is compounded half-yearly and paid after the
| maturity period of 6 years alongwith the principal. Rs. 1000 shall become
Rs.
| 1601 on maturity.
|
| Interest accrued each year on a certificate of Rs. 10,000 are as follows:
|
| Financial year Amount Payable
| 2005-06 -
| 2006-07 816
| 2007-08 883
| 2008-09 955
| 2009-10 1033
| 2010-11 1117
| 2011-12 1208
|
|
| I need a function which automatically show the maturity value of an
| Investment:
| a) Rs. 1000 pm for 20 years
| b) Rs. 1000 pa for 20 years
|
|
| In both cases I need a function/formula which automatically show the
| maturity value of an Investment:
| a) Rs. 1000 for 20 years
| b) Rs. 1000 pm for 20 years
| c) Rs. 1000 pa for 20 years
|
| Regards

Thank you sir now everythis is working fine.

One more help will finish completely.

Problem 1:
1. Investor will provide Rs. 1000 per year for 20 years.
2. From my table you will see that payment matures only after 30 months
completed.
3. Investor may provide Rs. 1000 per month for 20 years.

Problem 2:
1. Investor will provide Rs. 1000 per year for 20 years.
2. From my table you will see that payment matures at the end of 2 year.
3. Investor may provide Rs. 1000 per month for 20 years.

Regards,

macropod said:
Hi RushatiINDIA,

For problem 1:
=FV(8.41%,8+7/12,0,-1000,0)
compounding interest of 8.41%pa, calculated annually over 8 years & 7 months.
To calculate over 20 years:
=FV(8.41%,20,0,-1000,0)

For problem 2:
=FV(8%/2,6*2,0,-1000,0)
compounding interest of 8%pa, calculated half-yearly over 6 years.
To calculate over 20 years:
=FV(8%/2,20*2,0,-1000,0)
Note that the periodic interest rate is half the annual interest rate and the
number of periods is twice the number of years.

To calculate problem 2 over 20 years with interest calculated monthly:
=FV(8%/12,20*12,0,-1000,0)

Cheers
--
macropod
[MVP - Microsoft Word]

| I have tried many times with functions pv(), fv(), etc to solve the
following
| problems but unable to get required result. I think that I am unable to
| understand the financial functions properly. Could any one help me by giving
|
| Problem 1:
| Investment: Rs. 1000
| Rate of Interest: 8.41% compounded yearly. Deposit doubles in 8 years 7
| months.
| Amount Payable, on a certificate of Rs. 1000
| Term of Encashment Amount Payable
| After 030 months 1170.51
| After 036 months 1207.95
| After 042 months 1267.19
| After 048 months 1310.80
| After 054 months 1355.90
| After 060 months 1435.63
| After 066 months 1488.49
| After 072 months 1543.30
| After 078 months 1649.13
| After 084 months 1713.82
| After 090 months 1781.06
| After 096 months 1850.93
| After 102 months 2000.00
|
|
| Problem 2:
| Investment: Rs. 10000
| Rate of Interest: Interest 8% is compounded half-yearly and paid after the
| maturity period of 6 years alongwith the principal. Rs. 1000 shall become
Rs.
| 1601 on maturity.
|
| Interest accrued each year on a certificate of Rs. 10,000 are as follows:
|
| Financial year Amount Payable
| 2005-06 -
| 2006-07 816
| 2007-08 883
| 2008-09 955
| 2009-10 1033
| 2010-11 1117
| 2011-12 1208
|
|
| I need a function which automatically show the maturity value of an
| Investment:
| a) Rs. 1000 pm for 20 years
| b) Rs. 1000 pa for 20 years
|
|
| In both cases I need a function/formula which automatically show the
| maturity value of an Investment:
| a) Rs. 1000 for 20 years
| b) Rs. 1000 pm for 20 years
| c) Rs. 1000 pa for 20 years
|
| Regards

Hi RushatiINDIA,

If the investor deposits Rs. 1000 per year for 20 years, with two Rs. 500
deposits per year and compounding interest of 8%pa, calculated half-yearly,
then the formula is:
=FV(8%/2,20*2,-500,0,0) or =FV(8%/2,20*2,-500,0,1)
and the result is Rs. 47,512.76 or 49,413.27.

If the investor deposits Rs. 1000 per year for 20 years, with twelve Rs. 83.33
(Rs. 1000/12) deposits per year and compounding interest of 8%pa, calculated
monthly, then the formula is:
=FV(8%/12,20*12,-83.33,0,0) or =FV(8%/12,20*12,-83.33,0,1)
and the result is Rs. 49,083.07 or 49,410.29.

The alternative answers depend on whether the investor's deposits are at the
start of the month or the end of the month. Probably at the start of the
month, in which case the second formula applies in each case.

Cheers
--
macropod
[MVP - Microsoft Word]
PS: You can simplify the '8%/2', '20*2', '8%/12' and '20*12' if you want - I
left them that way to help you see how the values are calculated.

| Thank you sir now everythis is working fine.
|
| One more help will finish completely.
|
| Problem 1:
| Please consider the following matters:
| 1. Investor will provide Rs. 1000 per year for 20 years.
| 2. From my table you will see that payment matures only after 30 months
| completed.
| 3. Investor may provide Rs. 1000 per month for 20 years.
|
| Problem 2:
| 1. Investor will provide Rs. 1000 per year for 20 years.
| 2. From my table you will see that payment matures at the end of 2 year.
| 3. Investor may provide Rs. 1000 per month for 20 years.
|
| Regards,
|
|
| "macropod" wrote:
|
| > Hi RushatiINDIA,
| >
| > For problem 1:
| > =FV(8.41%,8+7/12,0,-1000,0)
| > compounding interest of 8.41%pa, calculated annually over 8 years & 7
months.
| > To calculate over 20 years:
| > =FV(8.41%,20,0,-1000,0)
| >
| > For problem 2:
| > =FV(8%/2,6*2,0,-1000,0)
| > compounding interest of 8%pa, calculated half-yearly over 6 years.
| > To calculate over 20 years:
| > =FV(8%/2,20*2,0,-1000,0)
| > Note that the periodic interest rate is half the annual interest rate and
the
| > number of periods is twice the number of years.
| >
| > To calculate problem 2 over 20 years with interest calculated monthly:
| > =FV(8%/12,20*12,0,-1000,0)
| >
| > Cheers
| > --
| > macropod
| > [MVP - Microsoft Word]
| >
| >
| > | > | I have tried many times with functions pv(), fv(), etc to solve the
| > following
| > | problems but unable to get required result. I think that I am unable to
| > | understand the financial functions properly. Could any one help me by
giving
| > |
| > | Problem 1:
| > | Investment: Rs. 1000
| > | Rate of Interest: 8.41% compounded yearly. Deposit doubles in 8 years 7
| > | months.
| > | Amount Payable, on a certificate of Rs. 1000
| > | Term of Encashment Amount Payable
| > | After 030 months 1170.51
| > | After 036 months 1207.95
| > | After 042 months 1267.19
| > | After 048 months 1310.80
| > | After 054 months 1355.90
| > | After 060 months 1435.63
| > | After 066 months 1488.49
| > | After 072 months 1543.30
| > | After 078 months 1649.13
| > | After 084 months 1713.82
| > | After 090 months 1781.06
| > | After 096 months 1850.93
| > | After 102 months 2000.00
| > |
| > |
| > | Problem 2:
| > | Investment: Rs. 10000
| > | Rate of Interest: Interest 8% is compounded half-yearly and paid after
the
| > | maturity period of 6 years alongwith the principal. Rs. 1000 shall
become
| > Rs.
| > | 1601 on maturity.
| > |
| > | Interest accrued each year on a certificate of Rs. 10,000 are as
follows:
| > |
| > | Financial year Amount Payable
| > | 2005-06 -
| > | 2006-07 816
| > | 2007-08 883
| > | 2008-09 955
| > | 2009-10 1033
| > | 2010-11 1117
| > | 2011-12 1208
| > |
| > |
| > | I need a function which automatically show the maturity value of an
| > | Investment:
| > | a) Rs. 1000 pm for 20 years
| > | b) Rs. 1000 pa for 20 years
| > |
| > |
| > | In both cases I need a function/formula which automatically show the
| > | maturity value of an Investment:
| > | a) Rs. 1000 for 20 years
| > | b) Rs. 1000 pm for 20 years
| > | c) Rs. 1000 pa for 20 years
| > |
| > | Regards
| >
| >
| >