Suppose the following:
- if a child's age is 2 years today and
- he/she will go to college at the age of 15 years
- for 2 years(duration of education) and
- for which Cost incurred P.A. as on today (Rs.) 100000,
- Expected rate of return (%) 12
- Expected Inflation rate (%) 6,
how can we calculate the future expenditure of education of child.
And for help the answer is: Amount required at start of College (Rs.) :4,39,383
To meet this Goal you must Invest (Rs.) :
- 1,00,695 Lumpsum amount
- 1,228 Monthly SIP
Can anyone help me to get the formula to calculate the future amount with right logic.