How to Invest now to Get 50,000 after 5 Years?

Mr.Avinash aged 40 year needs Rs.50,000 after 5 years, if the interest rate is 10% per Annum compounding, How much Should he invest now to get Rs.50,000 at the end of 5 years?

Well, this is a simple question. But many people don’t know that, how to achieve this goal. I mean many people don’t know that how to get Rs.50,000 after 5 years at the rate of interest 10% per annum compounded annually or half-yearly.

Well, you can achieve this goal by 2 methods.

01) Lump-sum Investing Method -

You just invest Rs.30,000 today in the Investment vehicle that gives you 10% compounded annual return and your money will become Rs.50,000 after the end of 5 years.

But well, if you need 50,000 at the end of 5 years than probably you don’t have 30,000 today to invest right? So let’s go to the another method.

02) This method is Recurring Deposit Method -

Here you invest regular amount of money every month, quarterly or half-yearly and at the end of the 5 years you get 50,000.

I have run the Compound interest calculator and according to the calculator, if you want to make 50,000 after 5 years at 10% interest rate, you need to invest Rs.6000 every year for next 5 years to get 50,000 at the end of 5 years.