Time Value of Money 57
(d) From the bank balance calculated above, how much cash can you withdraw for 10 years?
(e) If current savings are Rs 2.5 lac, how much of your income would you need to save each year for the next 5 years
in order to be able to withdraw Rs 75,000 a year for 5 years after retirement?
- Find the future value of the following series at the end of the 5th year at 13 percent interest:
Year Cash flow (Rs)
1 100
2 200
3 300
4 400
- Find the present value of the cash flows at 13 percent interest:
Year Cash flow (Rs)
1–
2 20,000
3–
4900
