offered 40% return after 5 years

[merid]

Hi,

I have been offered a 40% return if I make a one off lump sum investment of 15000 and not get a return for 5 years. Basically its an employee investment scheme. Its a plc company so very safe investment.
I am wondering is this a good return?- i.e. I will get back 21K after 5 years.

could someone advise based on the above what would be the annual rate of return? Want to make sure that its over 5% which I could get on fixed rate deposit account.

Thanks for any advice.

 

[redstar]

21k after 5 years on 15k is about 7% interest, compound.

There may be tax implications on the 6k gain, though so you should find out about that too.
You say its an investment scheme in one company ? What kind of investment other than deposit gives a guaranteed rate of return ?

Its a plc company so very safe investment.

Why would you say that ?

 

[LDFerguson]

It's about 6.75% per annum compound.

Be sure about the security of the arrangement. Check out tax implications also.

 

[askU]

actually 6.962% AER

(15000*1.06962^5=€21000)