Time Percentage

First 5 years 9%
Option 1
Next 5 year 7%
Later on 6.50%

First 10 years 8%
Option 2
Later On 7%

Option 3 Constant 7.25%

If an employee is staying for less than 5 years in a company Option 1 is the best choice as the retirem
If an employee is staying for more than 5 years and upto 21 years in a company Option 2 is the best c
22 years & above retirement time period option 3 fits the best for an employee
The above observation shows that the time for compounding will give different results to different in
is the best choice as the retirement fund as interest rate is higher.
a company Option 2 is the best choice as the retirement fund.
employee
e different results to different individual , hence Singh's father is right  
 KUMAR- 15 YEARS TO RETIERMENT

OPTION 1 OPTION 2
FIRST 5 YEARS ₹598.47 FIRST 10 YEARS ₹1,448.66
NEXT 5 YEARS ₹1,414.46 NEXT 5 YEARS ₹2,606.89
LATER ON ₹2,507.30

RAJ- 20 YEARS TO RETIERMENT

OPTION 1 OPTION 2
FIRST 5 YEARS ₹598.47 FIRST 10 YEARS ₹1,448.66
NEXT 5 YEARS ₹1,414.46 NEXT 10 YEARS ₹4,231.37
LATER ON ₹4,004.58

CONCLUSION- WE CAN SEE THAT OPTION 2 IS THE BEST FOR BOTH RAJ AND KUMAR
 OPTION 3
FV AT END OF 15 YEARS ₹2,561.83

OPTION 3
FV AT END OF 20 YEARS ₹4,213.22

OTH RAJ AND KUMAR

 RETIERMENT FOR SINGH IS NOT MENTIONED BUT HE HAS MORE SERVICE YEARS LEFT THAN RAJ A
RETIREMENT YEAR >20.

OPTION 1
20th Year 4004.58
21st Year ₹4,364.88
22nd Year ₹4,748.59
23rd Year ₹5,157.25
24th Year ₹5,592.47
25th Year ₹6,055.99
26th Year ₹6,549.62
27th Year ₹7,075.35
28th Year ₹7,635.25
29th Year ₹8,231.54
30th Year ₹8,866.59
31st Year ₹9,542.92

SINCE SINGH'S RETIREMENT AGE IS GREATER THAN 20, WE SEE THAT AFTER THE 20TH YEAR, OPTION
CA HAS GIVEN THE RIGHT RECOMMENDATION TO SINGH.
ONED BUT HE HAS MORE SERVICE YEARS LEFT THAN RAJ AND KUMAR, HENCE
RETIREMENT YEAR >20.

OPTION 2 OPTION 3
4231.37 4213.22
₹4,627.57 ₹4,618.68
₹5,051.50 ₹5,053.53
₹5,505.10 ₹5,519.91
₹5,990.46 ₹6,020.11
₹6,509.79 ₹6,556.57
₹7,065.47 ₹7,131.92
₹7,660.06 ₹7,748.98
₹8,296.26 ₹8,410.78
₹8,977.00 ₹9,120.56
₹9,705.39 ₹9,881.80
₹10,484.77 ₹10,698.23

R THAN 20, WE SEE THAT AFTER THE 20TH YEAR, OPTION 3 IS THE BEST OPTION. HENCE, THE
HAS GIVEN THE RIGHT RECOMMENDATION TO SINGH.
 TIME REMAINING- 5 YEARS

OPTION 1 OPTION 2
FV BY THE END OF
FV BY THE END OF 5 5 YEARS
YEARS ₹598.47 ₹586.66

TIME REMAINING-8 YEARS

OPTION 1 OPTION 2
FV BY THE END OF
FIRST 5 YEARS ₹598.47 8 YEARS ₹1,063.66
NEXT 3 YEARS ₹1,054.64

TIME REMAINING- 10 YEARS

OPTION 1 OPTION 2
FV BY THE END OF
FIRST 5 YEARS ₹598.47 10 YEARS ₹1,448.66
NEXT 5 YEARS ₹1,414.46

CONCLUSION- BEST OTION FOR RETIERMENT IN- 5 YEARS- OPTION 1; 8 YEARS- OPTION
G- 5 YEARS

OPTION 3
FV BY THE END OF 5
YEARS
₹577.95

G-8 YEARS

OPTION 3
FV BY THE END OF 8
YEARS ₹1,035.26

- 10 YEARS

OPTION3
FV BY THE END 10 YEARS
₹1,398.07

OPTION 1; 8 YEARS- OPTION 2; 10 YEARS- OPTION 2.