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We assume that any corporate house will invest every month at least 5% of salary they paid ,then the corpus they have after 10 yrs will be sufficient to take care of development of business.In this scenario ,they will be benefited by different ways such as margin will increase ,loan burdon wll be lesser and good relation between employee and employer ,good image of the company in market and finally good faith in the company.
YRS | Investment Amount | Expected Return | Final Balance |
---|---|---|---|
1 | 60000 | 4047 | 64047 |
2 | 60000 | 16216 | 136216 |
3 | 60000 | 37538 | 217538 |
4 | 60000 | 69174 | 309174 |
5 | 60000 | 112432 | 412432 |
6 | 60000 | 168785 | 528785 |
7 | 60000 | 239895 | 659895 |
8 | 60000 | 327633 | 807633 |
9 | 60000 | 424108 | 974108 |
10 | 60000 | 561696 | 1161696 |
Similarly,if we invest the same amount in direct equity then expected returns is as follows,
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