Let us say I take a policy from LIC where I pay 35000 per year for 20 years. If I survive the term of the policy, at the maturity I get 20 lakh. Now how do I calculate the interest I have earned?
bro in 20 years u pay 35000*20=Rs7,00,000/
Now Rs 13,00,000 is not ur interest its from bonus which LIC gave u on ur investment and thats compounded approx 8% per year
u can calculate like this
First year its 35000
2nd year 35000*8%=2800+35000=37800/
3rd year 37800*8%=3024+37800=40824/
you can compute like this upto 20year
in compounding major benefit comes mostly after passing of 75% period in ur case after 15yrs so stay long earn much
hope I am able to solve ur problem