What are the FIVE R's?

If I invest Rs.1000000 in a bank with a monthly deposit of Rs.15000 for the next five years with an increase of 10% each year in what I deposit and the rate of interest compounded quarterly is 9.05%, how much would receive in the end?

• What I meant with the 10% increase is that for the first year I would invest 15000 and for the second it would 15000+(15000*.10). I hope I have phrased the question properly. I could not find any formula on this.

• Answer:

  Pl open a recurring deposit with the bank for 12 months with 15k pm. At the end of 12 m, you put the amount in fd for 4 years. At the end of first year, start a fresh RD for another 12m with 16.5k.  On maturity convert into fd for 3 years. Repeat this. A problem with this, at the end of 12 m, the rate of interest on FD will not be 9.05 but then prevalent rate. If you want to avail current rate, open RD for 60 m at 15k pm. Then next year open fresh RD for 48 m at 1500 pm.next 36 incremental 10 pc and so on Depending on the mode you choose, the amount will differ. It should be close to 13.5 L at the interest rate you have given.