From: Clifford Frisby 
Newsgroups: uk.finance
Subject: Re: How to calc final bonus on endowment
Date: Sun, 22 Oct 2006 17:55:39 +0100

Steve Pearce wrote:


> 
> I think John has called it right, based on my own experience. I had an
> endowment mature in 2001. Right up to the final project (about 3-4
> months before maturity) they were projecting a final value of around
> 16K. This was fine with me as I took it out to pay out 11.5K. However
> the final bonus boosted it to over 30K. I was suprised and very happy.

Nice one. It's interesting to have that real-life counter-example. I was
thinking of asking the OP whether his projections were converging on his
contractually guaranteed payout (sum assured plus accrued regular bonuses),
to back up John's claim, but you have usefully preempted me.

John, thanks for putting me right.

OP, Nice question. I refer you to the answers supplied by Jonathan Bryce and
Alan Frame!