Your grandfather is 75 years old. He has total savings of
Rs.80,000. He expects that he live for another 10 years and
will like to spend his savings by then. He places his
savings into a bank account earning 10 per cent annually.
He will draw equal amount each year- the first withdrawal
occurring one year from now in such a way that his account
balance becomes zero at the end of 10 years. How much will
be his annual withdrawal?
- 4 Answers
- 11758 Views
- I also Faced
- E-Mail Answers
Answer Posted / abhivirthi tax and industrial
The total amount deposited into bank is Rs.80000.00. If the amount is withdrawn equally for 10 years amount to be withdrawn per year will be Rs. 8000.00. If the rate of interest is 10% the bank interest fetched each year will decrease proportionately like 8000,00 for first year, 7200 for second year, 6400 for third year, 5600 for fourth year, 4800 for fifth year, 4000 for the sixth year, 3200 for the seventh year, 2400 for the eighth year, 1600 for the ninth year and 800 for the tenth year i.e. for the last year and thus the total interest works to Rs. 44000.00. By dividing the total interest of Rs. 44000 by ten years the interest per year if disbursed evenly works to Rs. 4400 and adding the saving withdrawn equally at Rs.8000.00 per year, the total amount to be withdrawn works to Rs. 12400.00 per year equally.
Reply From:
ABHIVIRTHI Tax and Industrial Consultancy
R.R.JAGADEESAN
VAT PRACTITIONER AND INDUSTRIAL CONSULTANT
H-63, Palaami Enclave, New Natham Road,
Madurai-625014.
Cell: 9994990599
| Is This Answer Correct ? | 5 Yes | 4 No |
Post New Answer View All Answers
Unrealised profit will be debited to ?
credit card expenses entry kisme pass karenge
HP EMPLOYYES - If any one in HP company, Please give refernce for attend the Accounting Job in chennai,Bpo- chetpet.If any one Worked there Please,Send mail to me Umaiyo@gmail.com.I have 1 year exp in banking sector, & 8 months exp in accounting in SIEMENS, at present I'm searching for a job.If any person see this mail,Kindly send mail to me. Thank U Friend.
What is an ea in accounting?
Hello Friends, I am Vinod Rawat & want some tips of interview question for the post of accountant in a reputed company Pls. Given Examples.
What is the difference between a cash flow statement and an accural profit & loss account ? And why do simple organisations do not feel the need for a profit and loss type of statement ?
What is accounting normalization?
From the following particulars taken on 31 December, 1995, you are required to prepare a bank reconciliation statement to reconcile the bank balance shown in the Cash Book with that shown in the Pass Book: (i) Balance as per Pass Book on 31 December, 1995, O/D Rs 1,027. (ii) Four cheques drawn on 31 December but not cleared till January are as follows: Rs 12; Rs 1,021; Rs 98; and Rs 113. (iii) Interest on O/D not entered in Cash Book Rs 51. (iv) Three cheques received on 30 December and entered in the bank column of the Cash Book but not lodged in bank for collection till 3 January next: Rs 1,160; Rs 2,100; and Rs 2,080. (v) Cost of cheque book, Pass Book, etc; Rs 1.50 entered twice erroneously in Cash Book in November. (vi) A Bill Receivable for Rs 250 due on 29 December, 1995 was passed to the bank for collection on 28 December, 1990 and was entered in Cash Book forthwith whereas the proceeds were credited in the Pass Book only in January following. (vii) Chamber of Commerce subscription Rs 10 paid by bank on 1 December, 1990 had not been entered in the Cash Book. (viii) Bank charges of Rs 5 had been debited in the pass book twice erroneously. . . . plz be fast
What is normative accounting?
how to calculate accrued interest on fdr?how to see from bank statement????basic procedure plz advice..
Anti Takeover policies
while preparing insolvency account deficiency account is wich account? why we do not prepare it with general rules?
Tell me in accounting, vat abbreviates what?
what are the items falling under the category of reserves and surplus? whether bills of exchange is a reserves and surplus item 2.whther errors of omission will affect the trial balance
what will be the entry for inventory
