John has want to achieve 2,00,000 after 5 Years with annual growth rate is 14.87 %. So initial amount john has to invest can be calculated as
- SA = FA / (CAGR / 100 + 1) n
- CAGR = 14.87
- FA (Final Amount) = 2,00,000
- n (Period) = 5 Year
Initial Investment Calculation Steps
- SA = FA / (CAGR / 100 + 1) n
- SA = 2,00,000 / (14.87 / 100 + 1) 5
- SA = 2,00,000 / (0.1487 + 1) 5
- SA = 2,00,000 / (1.1487) 5
- SA = 2,00,000 / 2.00
- SA = 1,00,000