spects his salary value or his re paid exactly one vear from now, value of his ble time salary, if the discount rate is 8 percent toetse at the rate of 12 percent per year until his retirement n answering the above questions, ignore the tax factor. MINICASE - 11 business there. He has a son, Satnam, 10 years old and a baby girl Jasleen who will be one year old this Sardar Kartar Singh is a resident of Thailand for the past two decades and is the owner of a flourishing some grand plans for the future financial security of the family and they intend to use their present visit for placing suitable deposits with their bank in New Delhi as per those plans. in a premier private business school in India. For that the all inclusive expenditure at present rates According to the plan, Satnam would be doing his MBA after 10 years. It would be a two year course would be ? 20 lakhs and * 25 lakhs in the beginning of the first and second year respectively. Jasleen would marry at the end of her 21st year and for that an amount of 3 crores would then be needed years from now 6.35 Katar's wife is insistent that her presence would be essential in India in the best interests of both the children to keep a watchful eye on Satnam during his stint at the business school and most importantly, for the girl Funds would have to be tied up for her and children's relocation to India at the end of ten Kartar Singh always had great respect for his wife's commonsense and logic (though he was always dy of acknowledging it). To arrange the funds, he has very recently sold one of his investments, a sat in a prime locality in Bangkok, for a hefty sum. For Satnam's MBA he has decided to open two recurring deposit accounts, maturing on the 10 and 11" years respectively. For Jasleen's marriage he wants to open a cumulative term deposit for 20 years. For family maintenance in India after 10 years, he wants to open another cumulative term deposit for 10 years with the maturity value of which he could immediately purchase an annuity due for the following 10 years. It is expected that after 10 years the family in India would need 12 lakhs per year without taking inflation into consideration To make the calculations on the specific amounts needed he has called you, an upcoming financial consultant. He asks you to make the calculations in such a way that he could easily understand the logic thereof. You understand from him that as all the deposits would be made out of his NRE account with the bank, it would not deduct any tax amount from the interest to be earned. Specifically you are required to calculate the amounts that need to be deposited now in: the two recurring deposit accounts, in the beginning of each month. ( a cumulative fixed deposit for meeting the cost of Jasleen's marriage. (ii) a cumulative fixed deposit with the bank for purchasing the annuity due needed by the family in India after 10 years from an insurance company which is expected to give a return of 10 percent per year. Yous to work with the following data: than 5 years is 8 percent and compounding is done once in a quarter. Inflation in India after 10 years For both cumulative fixed deposit and Recurring deposit, nominal interest rate for periods of more is expected to be 5 percent for the next ten years. The MBA course expenses are likely to grow at 5 Show your detailed working. nt percent per annum dix 6A spects his salary value or his re paid exactly one vear from now, value of his ble time salary, if the discount rate is 8 percent toetse at the rate of 12 percent per year until his retirement n answering the above questions, ignore the tax factor. MINICASE - 11 business there. He has a son, Satnam, 10 years old and a baby girl Jasleen who will be one year old this Sardar Kartar Singh is a resident of Thailand for the past two decades and is the owner of a flourishing some grand plans for the future financial security of the family and they intend to use their present visit for placing suitable deposits with their bank in New Delhi as per those plans. in a premier private business school in India. For that the all inclusive expenditure at present rates According to the plan, Satnam would be doing his MBA after 10 years. It would be a two year course would be ? 20 lakhs and * 25 lakhs in the beginning of the first and second year respectively. Jasleen would marry at the end of her 21st year and for that an amount of 3 crores would then be needed years from now 6.35 Katar's wife is insistent that her presence would be essential in India in the best interests of both the children to keep a watchful eye on Satnam during his stint at the business school and most importantly, for the girl Funds would have to be tied up for her and children's relocation to India at the end of ten Kartar Singh always had great respect for his wife's commonsense and logic (though he was always dy of acknowledging it). To arrange the funds, he has very recently sold one of his investments, a sat in a prime locality in Bangkok, for a hefty sum. For Satnam's MBA he has decided to open two recurring deposit accounts, maturing on the 10 and 11" years respectively. For Jasleen's marriage he wants to open a cumulative term deposit for 20 years. For family maintenance in India after 10 years, he wants to open another cumulative term deposit for 10 years with the maturity value of which he could immediately purchase an annuity due for the following 10 years. It is expected that after 10 years the family in India would need 12 lakhs per year without taking inflation into consideration To make the calculations on the specific amounts needed he has called you, an upcoming financial consultant. He asks you to make the calculations in such a way that he could easily understand the logic thereof. You understand from him that as all the deposits would be made out of his NRE account with the bank, it would not deduct any tax amount from the interest to be earned. Specifically you are required to calculate the amounts that need to be deposited now in: the two recurring deposit accounts, in the beginning of each month. ( a cumulative fixed deposit for meeting the cost of Jasleen's marriage. (ii) a cumulative fixed deposit with the bank for purchasing the annuity due needed by the family in India after 10 years from an insurance company which is expected to give a return of 10 percent per year. Yous to work with the following data: than 5 years is 8 percent and compounding is done once in a quarter. Inflation in India after 10 years For both cumulative fixed deposit and Recurring deposit, nominal interest rate for periods of more is expected to be 5 percent for the next ten years. The MBA course expenses are likely to grow at 5 Show your detailed working. nt percent per annum dix 6A