Example, you are an investor. You invest your $10,000 in a financial instrument, giving you 9% interest, compounded on annual basis for 10 years. How much will you get, at the end of the 10 years?
If you are a financial planner, like me, you will definitely reach out your financial calculator and punch in these figures, to get the answers. idoiteveryday
Set: End
n: 10
i%: 9
PV: -10,000
FV: Solve
…..and in an instance, you will get $23,673.63
…………………………………………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………………………………………….
In my “financial planning for wealth manager” (catered for high networth individual) class, I learnt to calculate the answers, without using a financial calculator. You can use a normal, scientific calculator to get the answers.
How do you do that?
You can calculate it this way…..Use this formula….. Principal (1+interest)number of years
Just take 10,000 (1+0.09)10 = $23,673.63
Easy right?
For now, just remember this formula. In the next blog post, I will share with you the intricate mechanics of this formula. Share this blog post, if you find it useful! 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
- My Quitting Story – Why I Left My Old Agency For The “Greater Good” - May 27, 2024
- Islamic Financial Consultant, Helmi Hakim is back…. - February 7, 2023
- 5 Secret Ways To Make You Feel Better When Handling Challenges In Your Life - May 22, 2021
This post was written by:
- My Quitting Story – Why I Left My Old Agency For The “Greater Good” – May 27, 2024
- Islamic Financial Consultant, Helmi Hakim is back…. – February 7, 2023
- 5 Secret Ways To Make You Feel Better When Handling Challenges In Your Life – May 22, 2021