Suresh also invests ₹1 lakh per annum for 30 years, but earns 6 per cent per annum for the first 15 years and 12 per cent for the subsequent 15 years. Both invest the same amount and earn the same return - a compound annual growth rate (CAGR) of 8.96 per cent over 30 years. Only the sequence of returns is different.
Would both Suresh and Prem end up with the same corpus at the end of 30 years? At the end of period, Suresh would have accumulated 1.78 crore, while Prem would have ₹1.25 crore.
Why did Suresh end. up with a 41 per cent bigger corpus? This happened because he earned. higher returns during the second half, when his corpus was larger, whereas Prem earned a strong series of returns in the first half when his corpus was relatively small.
The sequence of returns changed the outcome.
هذه القصة مأخوذة من طبعة May 06, 2024 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة May 06, 2024 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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