Investment Need is the investment to be made in order to achieve a financial target. This is a backward approach used to find the investment needed when the expected maturity amount is known.
Example: Richard has a wish to sponsor his newly born grand daughter's education by accumulating
25,000.00 USD in next
15 years. He has to find out the amount he needs to invest as a lump sum amount today or as
monthly deposits over the period. He is expecting an interest rate of
10.50 % per annum
compounded annually.
Expected Amount | Deposit Mode | Period | Interest Rate | Compounding | Deposit At |
25,000.00 USD | Monthly | 15 Year | 10.50 % | Annually | Start of the period |
Click here to see the Richard's proposed investment.