Every parent is thinking more about the education of their children and their marriage. For this, they are busy accumulating more money. Sometimes, for the education of the children, they withdraw the money on interest if the money is very less. They take out loans to get their children married. And again for the next three to four years, they fill the loan weeks. From the following example, we will notice that there is no need to take out any kind of loan to educate children or their marriage. We can deposit a small amount of money every month from our own money and deposit a large amount in fifteen to twenty years.
Let us assume a period of twenty-five years here. Because of the young generation who get married after the age of twenty-five. If your son or daughter is 1 year old then you have a full twenty-five years. If they are five years old, you have twenty years. If they are ten years old, you have fifteen years. If they are fifteen years old, you have ten years old, and if they are twenty years old, you have five years left. The period of five years is also very long. Even if there is a short period of time, there is no need to worry. You can deposit a huge amount in these five years.
We are collecting some amount from the salary we get every month. And every year our salary increases, so every year we are depositing more money. We are depositing this amount as a recurring deposit (RD) in our bank and assume that you will get 8% or 6% interest on our amount every year.
Year 1 to 5
Year |
Monthly |
yearly |
Total Amount + int. |
Total Amount |
| 1 | 1,000 | 12,००० | 12,००० + 960 | 12,960/- |
| 2 | 2,000 | 24,००० | 24,००० + 1920 | 25,920/- |
| 3 | 3,000 | 36,००० | 36,००० + 2880 | 38,880/- |
| 4 | 4,000 | 48,००० | 48,००० + 3840 | 51,840/- |
| 5 | 5,000 | 60,००० | 60,००० + 4800 | 64,800/- |
Total Amount |
1,94,400 |
|||
We are FD an amount of Rs. 1,94,400/- for the next five years at the interest of 8% PA.
Year 6 to 10
Year |
Monthly |
yearly |
Total Amount + int. |
Total Amount |
| 6 | 6,००० | 72,००० | 72,००० + 5,760 | 77,760/- |
| 7 | 7,००० | 84,००० | 84,००० + 6,720 | 90,720/- |
| 8 | 8,००० | 96,००० | 96,००० + 7,680 | 1,03,680/- |
| 9 | 9,००० | 1,08,००० | 1,08,००० + 8,640 | 1,16,640/- |
| 10 | 1०,००० | 1,20,००० | 1,20,००० + 9,600 | 1,29,600/- |
|
Total Amount |
5,18,400/- | |||
We accumulate an amount of Rs. 5,18,400/- in 6 to 10. Similarly, we had FD for Rs.1,94,400/- for the last five years. Assume that we got the estimated amount of Rs. 3,50,000/-. That is, the total amount we have deposited in 1 to 10 years –
350,000/- + 5,18,400 = 8,68,400/-
This amount of Rs. 8,68400/- again we are FD to earn 8% interest per annum for the next five years.
Year 11 to 15
Year |
Monthly |
yearly |
Total Amount + int. |
Total Amount |
| 11 | 11,००० | 1,32,000 | 1,32,000 + 7,920 | 1,39,920/- |
| 12 | 12,००० | 1,44,000 | 1,44,000 + 8,640 | 1,52,640/- |
| 13 | 13,००० | 1,56,000 | 1,56,000 +9,360 | 1,65,360/- |
| 14 | 14,००० | 1,68,000 | 1,68,000 + 10,080 | 1,78,080/- |
| 15 | 15,००० | 1,80,000 | 1,80,000 + 10,800 | 1,90,800/- |
| Total Amount | 8,26,800/- | |||
You deposited Rs. 8,26,800/- in five years from 11 to 15. Similarly, we had FD for 8,68,400/- for five years. Assume that we got the estimated amount of Rs.15,00,000/-. That is, the total amount we have accumulated in 1 to 15 years –
1500,000/- + 8,26,800 = 23,26,800/-
We again FD an amount of Rs.23,26,800/- earn 6% interest per annum for the next five years.
Year 16 to 20
Year |
Monthly |
yearly |
Total Amount + int. |
Total Amount |
| 16 | 16,000 | 1,92,000 | ,192,000 + 11,520 | 2,03,520/- |
| 17 | 17,000 | 2,04,000 | 2,04,000 + 12,240 | 2,16,240/- |
| 18 | 18,000 | 2,16,000 | 2,16,000 + 12,960 | 2,28,960/- |
| 19 | 19,000 | 2,28,000 | 2,28,000 + 13,680 | 2,41,680/- |
| 20 | 20,000 | 2,40,000 | 2,40,000 + 14,400 | 2,54,400/- |
| Total Amount | 11,44,800/- | |||
We accumulated Rs. 11,44,800/- in five years from 16 to 20. Similarly, we had FD for 23,26,800/- for five years. Assume that we got the estimated amount that came to Rs. 45,00,000/- . That is, the total amount you have accumulate in 1 to 20 years –
45 00,000/- + 11,44,800 = 56,44,800/-
We again FD an amount of Rs.56,44,800/- 6% interest per annum for the next five years.
Year 21 to 25
Year |
Monthly |
yearly |
Total Amount + int. |
Total Amount |
| 21 | 21,000 | 2,52,000 | 2,52,000 + 1,5120 | 265120 |
| 22 | 22,000 | 2,54,000 | 2,54,000 + 15,840 | 2,79,820/- |
| 23 | 23,000 | 2,76,000 | 2,76,000 + 16,560 | 2,82,560/- |
| 24 | 2,4000 | 2,88,000 | 2,88,000 + 17,280 | 3,05,280/- |
| 25 | 25,000 | 3,00,000 | 3,00,000 + 18,000 | 3,18,000/- |
| Total Amount | 14,50,800/- | |||
We accumulated an amount of Rs.14,50,800/- in five years from 21 to 25. Similarly, we had FD For Five years amount Rs.56,44,800/-. Assume that we got the estimated amount Rs.1,00,00,00,000/-. That is, the total amount we have accumulated in 1 to 25 years –
100,00,000/- + 14,50,800 = 1,14,50,800/-
First, you deposited a small amount of money from your own money without taking out any loan.
I have written E-book “How to Start and Expand Business” on the subject of business. In that too, I have given such an example to grow your business. Those who have a business or want to start a business must read this E-book.
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Thank you!
Ravindra V. nagaonkar
Author and Founder of
www.adonads.net
nagaonkarorg@gmail.com
* The above mathematics is an example. You can deposit the amount in your own way.
* The interest rates of each bank are different every month.
* The interest rates of Recurring Deposits (RD) and Fixed Deposits (FD) are different.
* Open your bank account in a Government Bank.
* Talk with your CA about income tax.
