Fiancial Planning

5 CALCULATORS THAT CAN MAKE FINANCIAL PLANNING EASY If you are avoiding financial planning due to complicated calculations, be it determining the future value of goals or life cover needed, here are the formulae and calculators that will ease your task, says ET wealth. 1. Future goal value What will be the corpus you will have to save for a goal that is several years away? Why do you need it? As you set your goals, be it the child’s education or wedding, you will have to calculate the amount you need to save. The future value of the goal will be different from the current one because inflation will increase the value of the corpus you need. For instance, if you want to save for your three-year-old child’s education for a course that costs Rs 10 lakh today, you will have to find out how much it will cost 15 years from now, considering the rate of inflation at 7%. Formula Without the calculator, you will have to find out the future value by using this formula: FV = PV (1 + r/100)n FV: Future value PV: Present value r: Inflation rate n: Number of years to goal Read more at www.starhealthdevarajan.com/news/552