6) EMI formula = [P * r * (1 + r)^n] / [(1 + r)^n - 1]
P = 1,000,000
r = 18% = 0.18
n = 15
EMI = [1,000,000 * 0.18 * (1 + 0.18)^15] / [(1 + 0.18)^15 - 1] = 196,402.8
7) First deposit = $4,000 which rises by $500 each year
Interest rate = 15%
Future value is calculated as: [Money saved * (1 + Rate of Interest)^Money saved for years]
Year | Money saved | Years for which money is saved | Future value |
1 | 4,000.00 | 9 | 14,071.51 |
2 | 4,500.00 | 8 | 13,765.60 |
3 | 5,000.00 | 7 | 13,300.10 |
4 | 5,500.00 | 6 | 12,721.83 |
5 | 6,000.00 | 5 | 12,068.14 |
6 | 6,500.00 | 4 | 11,368.54 |
7 | 7,000.00 | 3 | 10,646.13 |
8 | 7,500.00 | 2 | 9,918.75 |
9 | 8,000.00 | 1 | 9,200.00 |
10 | 8,500.00 | - | 8,500.00 |
115,560.60 |
Future value of money saved at the end of 10 years is 115,560.6
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