Tuesday, December 15, 2015

Simulation file

The file can be downloaded from https://drive.google.com/file/d/0B6PHuk6I5SxbZmlEYXczUWVydnM/view?usp=sharing.

What will be the accumulated amount in an investment of Rs. 50000 after 10 years if the interest rate varies normally with mean 7% pa and variance 5% pa? This files makes 500 simulation runs and finds the probability of getting more than Rs. 100000 at the end.