Question

A person deposits Rs 2,000 from his salary towards his contributory pension scheme. The same amount is credited by his employer also. If an 8% rate of compound interest is paid, then find the maturity amount at end of 20 years of service. [(1.0067)²⁴⁰ = 4.966]

Answer 1

A person deposit Rs 2,000. 

The employer also credited the same amount. 

a = Rs 2,000 + Rs 2,000 = Rs 4,000

Note: If (1.0067) = 4.966 (Original value) 

Then A = 600000 (4.966 – 1) 

= 600000(3.966) 

= Rs 23,79,600