Problem with time value of money!~?

please help me with this problem!

Q) You need to plan to buy a house after 5 years and expect to have Indian rupees Rs. 500,000 by that time. how much would you put aside every year if you get a rate of interest of 10% p.a?
However if your investment gets postponed to 7 years and need Rs. 700,000 at the ned of 7 years, how3 much additional per year you should put for these 2 years?
remember you have already collected Rs. 500,000 at the end of 5 years and this also gets interest.

how3 much == how much additional...

For your first question, you would have to invest 81,899 each year for 5 years. But if you make monthly investments, you would need to invest 6457 each month.

The 500,000 would grow to 605,000 in two years so you would have to make up the other 95000, which requires two annual payments of 45,238.

http://www.fool.co.uk/school/calculators... will give you the first 500,000. The next 200,000 can be determined if you use the 500,000 as an initial lump sum.

put Rs.311,000.-
1st year you will get - 342,100.-
2nd year- 376,310.00
3rd year- 413,941.-
4th year- 455,335.-
5th year- 500,868.-

for 700,000 at end of 7-years:

you got 500,868 at completion of 5-years.
so addup Rs.78,500 = 579,368.-
this you will get 1st year- 637,304.80 n 2nd year 701,035.-

Since i am generous so making 1,035/- extra for you.
hope you are with me. keep in touch.

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