Planning a vacation can be a lot of fun! If you’ve been dreaming of a fantastic trip but haven’t made any real plans, now is a great time to start. A vacation planner can be like your trusty guide to turn your dream vacation into reality. It helps you figure out how to make it happen while keeping things affordable and on schedule. So, get ready for an exciting adventure!
Imagine the Vacation Planning Calculator as your magical crystal ball for estimating how much your dream trip will cost in the future. It works its magic by factoring in things like how prices might go up over time and how long you have until your adventure to give you a sneak peek at your future expenses.
The vacation planning calculator works on the concept of future values. The formula is given below:
FV= PV(1+r) ^nWhere,
FV= future expenses of the trip
PV= present expenses of trip
R= rate of inflation
n= duration of investment
Suppose, you are planning to take your dream vacation after 5 years from now. The present expense of the trip is Rs. 10 lakhs, the expected inflation rate is 8% and the expected rate of return is 10%
Plugging these values in the above-mentioned formula:
FV= 10,00,000(1+0.08) ^5This gives us an estimated future expense of the trip, which would be ~Rs. 14.7 lakhs.
To obtain estimated future value using a vacation planning calculator, you need to input when you are planning to take the trip, the current expense of the trip, the expected inflation rate, and the expected rate of return. It will promptly display the future cost and create a personalized investment plan based on your given inputs.
