Value of Money ent ity ili 6.35 Kartar'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 r shy of acknowledging it). To arrange the funds, he has very recently sold one of his investments flat 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 10h and 11th 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: (i) the two recurring deposit accounts, in the beginning of each month. (ii) a cumulative fixed deposit for meeting the cost of Jasleen's marriage. (iii) 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. You set to work with the following data: For both cumulative fixed deposit and Recurring deposit, nominal interest rate for periods of more than 5 years is 8 percent and compounding is done once in a quarter. Inflation in India after 10 years is expected to be 5 percent for the next ten years. The MBA course expenses are likely to grow at 5 percent per annum. Show your detailed working Appendix 6A The Time Value More 16:35 tento keep a watchful eye on Satnam during his stint at the business school and most importantly, the girl Funds would have to be tied up for her and children's relocation to India at the end of ten dar acknowledging it!). To arrange the funds, he has very rerently sold one of his investments, a Kartar Singh always had great respect for his wife's commonsense and logic (though he was always to open a cumulative term deposit for 20 years. For family maintenance in India after 10 years, he immediately purchase an annuity due for the following 10 years. It is expected that after 10 years the To make the calculations on the specific amounts needed he has called yon, an upcoming financial sultant. He asks you to make the calculations in such a way that he could easily understand the so thereof. You understand from him that as all the deposits would be made out of his NRE account as the bank, it would not deduct any tax amount from the interest to be earned. With otrok Specifically you are required to calculate the amounts that need to be deposited now in XSAT the two recurring deposit accounts, in the beginning of each month. ma cumulative fixed deposit for meeting the cost of Jasleen's marti arriage. - acumulative 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 21.0 studio You set to work with the following data: 2 BOX For both cumulative fixed deposit and Recurring deposit, nominal interest rate for periods of more years is 8 percent and compounding is done once in a quarter. Inflation in India after 10 years espected to be 5 percent for the next ten years. The MBA course expenses are likely to grow as percent per annum Show your detailed working. per year. Appendix 6A Value of Money ent ity ili 6.35 Kartar'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 r shy of acknowledging it). To arrange the funds, he has very recently sold one of his investments flat 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 10h and 11th 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: (i) the two recurring deposit accounts, in the beginning of each month. (ii) a cumulative fixed deposit for meeting the cost of Jasleen's marriage. (iii) 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. You set to work with the following data: For both cumulative fixed deposit and Recurring deposit, nominal interest rate for periods of more than 5 years is 8 percent and compounding is done once in a quarter. Inflation in India after 10 years is expected to be 5 percent for the next ten years. The MBA course expenses are likely to grow at 5 percent per annum. Show your detailed working Appendix 6A The Time Value More 16:35 tento keep a watchful eye on Satnam during his stint at the business school and most importantly, the girl Funds would have to be tied up for her and children's relocation to India at the end of ten dar acknowledging it!). To arrange the funds, he has very rerently sold one of his investments, a Kartar Singh always had great respect for his wife's commonsense and logic (though he was always to open a cumulative term deposit for 20 years. For family maintenance in India after 10 years, he immediately purchase an annuity due for the following 10 years. It is expected that after 10 years the To make the calculations on the specific amounts needed he has called yon, an upcoming financial sultant. He asks you to make the calculations in such a way that he could easily understand the so thereof. You understand from him that as all the deposits would be made out of his NRE account as the bank, it would not deduct any tax amount from the interest to be earned. With otrok Specifically you are required to calculate the amounts that need to be deposited now in XSAT the two recurring deposit accounts, in the beginning of each month. ma cumulative fixed deposit for meeting the cost of Jasleen's marti arriage. - acumulative 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 21.0 studio You set to work with the following data: 2 BOX For both cumulative fixed deposit and Recurring deposit, nominal interest rate for periods of more years is 8 percent and compounding is done once in a quarter. Inflation in India after 10 years espected to be 5 percent for the next ten years. The MBA course expenses are likely to grow as percent per annum Show your detailed working. per year. Appendix 6A