Money Club Guide

Understanding The Calculations

By November 27, 2017 No Comments

To understand the calculations, we are taking an example of ‘Dosti4ever’ which is a Money Club of 4 friends – Amit, Karan, Tarun and Vijay. Here, everyone is contributing Rs.1000 per month. The total club amount is Rs.4000 (Rs.1000 x 4 members).

 

In the first round of bidding, Tarun bids the highest amount among all and wins the bid.

 

His bid amount of Rs.300 is equally distributed among his 3 club members (Amit, Karan and Vijay). So each of these 3 members gets Rs.100 (Rs.300 divided by 3).

 

Amit, Karan and Vijay had to send Rs.1000 to Tarun but now they will send only Rs.900 (Rs.1000 – Rs.100).

 

So, Tarun will get Rs.900 from 3 members i.e. he will get Rs.2700 in this round.

 

Now, Tarun will not be able to bid in the remaining 3 rounds but he will keep paying his contributions.

 

Note: Same process will repeat in the further rounds.

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