Question
A young builder is planning for his superannuation. He begins making monthly payments into an account so that he can retire before he turns 50.
A young builder is planning for his superannuation. He begins making monthly payments into an account so that he can retire before he turns 50. For 25 years he earns a fixed 3.9% p.a. compounded monthly. At the age of 50, he retires and uses the savings to purchase a perpetuity with an interest rate of 5.52% p.a. compounded monthly, paying $3200 each month.
How much did the builder save each month to prepare for his early retirement?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
