“BENEFITS OF EARLY INVESTING”

Consider following three cases of investing,effective yield and maturity amount.

There persons started investing at different age of 30 , 40 and 50 yrs.We have considered that they have invested upto age of 60 which is normally retirement age.

A) suppose person “A” starts saving at age of 30 yrs.

He decides to invest till age of 60 yrs.

Amount invested per month : rs.1000/-

Term of investment : 30 yrs.

Assumed rate of interest :9% p.A.

Maturity amount : rs 18,18,950 /-

Effective yield : 48%.

B) suppose “B” starts investing Rs 1000 per month at age of 40.

He decides to invest upto age of 60 years.

Term available : 20 yrs.

Maturity amount becomes : rs 6,67,000.

Effective yield : 24.65%

C) person C decides to invest rs.1000/- per month at a age of 50 .

Term available for investment : 10yrs.

Considering rate of interest as 9% ,

Maturity amount becomes : 1,94,222.

Effective yield : 14.35 %.

In short:

 

COMPARE MATURITY AMOUNT AND EFFECTIVE YIELD FOR THREE CASES.WE WILL FIND THAT

      ”TIME IS MONEY”

                              “START INVESTING EARLY”