superannuation help - hard! (1 Viewer)

[lookoutastroboy]

Hey guys,

I really need help with these superannuation/series questions. They're of Yr 11/12 advanced standard.

Q1. An amount of $3000 is invested in a superannuation fund at the start of each year for 18 years. The interest at a rate of 9% p.a is paid every half-year. How much is the investment worth after 18 years?

I got an answer around $138,000 for this one but I'm not sure...

Q2. A man contributes $1200 each year into a superannuation fund for the first 30 years of his working life. For the next fifteen years (until retirement), he decides to increase this, and invests a total of $5000 each year.

If the investment earns 8% p.a. paid yearly over the whole year period , how much will his investment be worth upon retiring?

I have no clue about what this question is saying...



Thanks in advance,

lookoutastroboy

 

[whateverrrr]

Hey guys,

I really need help with these superannuation/series questions. They're of Yr 11/12 advanced standard.

Q1. An amount of $3000 is invested in a superannuation fund at the start of each year for 18 years. The interest at a rate of 9% p.a is paid every half-year. How much is the investment worth after 18 years?

I got an answer around $138,000 for this one but I'm not sure...

Q2. A man contributes $1200 each year into a superannuation fund for the first 30 years of his working life. For the next fifteen years (until retirement), he decides to increase this, and invests a total of $5000 each year.

If the investment earns 8% p.a. paid yearly over the whole year period , how much will his investment be worth upon retiring?

I have no clue about what this question is saying...



Thanks in advance,

lookoutastroboy

Hey buddy,

The answer to the first question is solved by as follows:

3000 (( (1.045)^36 - 1)/0.045) = $258491.8974 I calculated using an online scientific calculator so I hope its correct. I am at work and my calculator is at home lol.

In regards to the second question, all it is saying pretty much that he invests $1200 each year for 30 years and then after the 30 years, he decides to invest $5000 for the next 15 years. Just think about it buddy. So the total accum. value after the total 45 years is found by the following working out:

1200(( (1.08)^30 - 1)/0.08) + 5000(( (1.08)^15 - 1)/0.08) = 135939.8533 + 135760.5696

Which therefore results in a total of $271700.4229

Hope that helps mate

 

[Lukybear]

Hey buddy,

The answer to the first question is solved by as follows:

3000 (( (1.045)^36 - 1)/0.045) = $258491.8974 I calculated using an online scientific calculator so I hope its correct. I am at work and my calculator is at home lol.

Q2 is right, but Q1, i think it 273124.028, acquired from
3000 (( (1.045)^37 - 1)/0.045)

cause its (1+1.045...+1.045^36)