Hi Rushati:

The easiest way to do it is you do the classic cashflow worksheet where you
put all the information done and then do the calculations.

Then you can see if the figures look resonable and you have something to
discuss.

So you start off with your balances and then the cash injections and then
calculate the interest and carry it forward.

Good luck.


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Hope this helps
Martin Fishlock, Bangkok, Thailand
Please do not forget to rate this reply.


"RushatiINDIA" wrote:

Could anyone please help me to calculate the Rate of Interest of the
Following?

Problem 1:

Intestment Rs. 4384 for Next 20 years. ie Total Investment Rs. 87680

Maturity at the end of 25th year.

Maturity Value = Rs. 265500

I have calculated the Rate of Interest (ROI) as follows:

=ROUND(((265500-87680)/87680*(365/(25*365)))*100,2) ie 8.11%

Problem 2:

Intestment Rs. 6450 for Next 20 years. ie Total Investment Rs. 129000

Maturity at the end of 20th year.

Maturity Received Such as follows:

at the end of 5th year = Rs. 20000

at the end of 10th year = Rs. 20000

at the end of 15th year = Rs. 20000

at the end of 20th year = Rs. 40000

plus interest = Rs. 84000

Total : 184000

I have calculated the Rate of Interest (ROI) as follows:

=ROUND(((184000-129000)/129000*(365/(20*365)))*100,2) ie 2.13%

Is the both procedure of calculation right?

May I know the correct function for solution?

Thanks in advance.

Regards