Currently, I have been presented with a endowment policy by an agent which sounds something like this :-
Premium : 12,000 per year for 6 years = 72,000
In year 15 you withdraw, you will get back = 80,919
In year 20 you withdraw, you will get back = 111,846
In year 30 when it lapse, you will get back = 206,974
How do we calculate the return for this type of investment ?
You can use the IRR formula in the Google Spreadsheet or Excel.
Use these data:
Year Cash Flow
2 : -12k
3 : -12k
4 : -12k
5 : -12k
6 : -12k
15 : 80,919
Similar for the other two scenario:
20 : 111,846
30 : 206,974
Let me know what result did you manage to calculate?