Comments on: Personal Finance Math (Part 2)

By: Karthik Rangappa

Karthik Rangappa — Sun, 12 Jan 2025 01:44:37 +0000

In reply to Nitin singh. Yes, you can take the number that gives you more confidence. But in general, the more conservative you are, the better for you.

By: Nitin singh

Nitin singh — Sat, 11 Jan 2025 13:41:15 +0000

Why we take discount rate 9% for 15 year, I think it’s to high can we take discount rate equal to inflation rate which is around approx 6%

By: Karthik Rangappa

Karthik Rangappa — Wed, 08 Jan 2025 01:53:21 +0000

In reply to Narottama. This is the best place to interact. But for financial planning, you need to speak to someone else, I dont have the qualification to plan financials.

By: Dipayan

Dipayan — Tue, 07 Jan 2025 20:52:59 +0000

Is that Gojo Satorou

By: Narottama

Narottama — Tue, 07 Jan 2025 13:28:40 +0000

Sir, How I can get in touch with you for guidance on my Financial Planning.

By: Karthik Rangappa

Karthik Rangappa — Wed, 13 Nov 2024 06:34:36 +0000

In reply to Aishwarya. The opportunity cost in this case is an FD or any other investment of that nature. Hence 7.5%. By the way, you can always use 9%. In personal finance, its always ok to be conservative in your assumption rather than aggressive.

By: Aishwarya

Aishwarya — Tue, 12 Nov 2024 16:56:13 +0000

sir, why havent we considered 9% as the Opportunity cost = Risk free rate + Risk premium. why only 7.5%. Investing a lumpsum amount of Rs.200,000/- today is also risky, as dad’s friend didnt mention its risk free.

By: Karthik Rangappa

Karthik Rangappa — Sun, 06 Oct 2024 04:51:14 +0000

In reply to Swarnava Addya. Yes, you can. But I think your input data for this could be tricky :)

By: Swarnava Addya

Swarnava Addya — Sat, 05 Oct 2024 19:09:43 +0000

Can this programmed conditioning investment statement applicable in good decision making?

If the Present Value (PV) of the future cash flows is greater than the initial investment, the investment is considered profitable.
&
If the PV is less than the initial investment, it results in a loss.

By: Karthik Rangappa

Karthik Rangappa — Mon, 17 Jun 2024 04:15:41 +0000

In reply to Aishwarya. No, why would you want to do that? For Indian companies, you;d want to consider RBI rates.

By: Aishwarya

Aishwarya — Sat, 15 Jun 2024 06:42:02 +0000

Hi, my question is are the government bond rates different at global level, if yes then we should have considered the US/foreign government bond rate instead of RBI rates???

By: Karthik Rangappa

Karthik Rangappa — Mon, 27 May 2024 04:38:07 +0000

In reply to Nisin. Happy learning :)

By: Nisin

Nisin — Sun, 26 May 2024 14:48:05 +0000

Thanks a lot Sir

By: Karthik Rangappa

Karthik Rangappa — Tue, 12 Mar 2024 06:29:42 +0000

In reply to Bhavishath Shetty. Sure, let me check if there is a typo from our side.

By: Bhavishath Shetty

Bhavishath Shetty — Mon, 11 Mar 2024 15:49:56 +0000

the present value of money in the above problem is 1,52,078/-