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At the end of this month, Leslie will start saving $200 a month for retirement through his company's superannuation plan. His employer will contribute an
At the end of this month, Leslie will start saving $200 a month for retirement through his company's superannuation plan. His employer will contribute an additional $0.50 for every $1.00 that he saves. He is employed by this firm for 30 more years and earns an average of 11% monthly compounding on his retirement savings. Required:
- How much will Leslie have in his superannuation account 30 years from now?
- If at the end of year 20, Leslie voluntarily puts $20 000 in his superannuation, how much will he has in that account when he retires?
- Leslie has a second investment and it will start to pay him $ 25,000 next year and after that the payment will grow at 4% each year for the rest of his life. How much is the present value of Leslie's investment payments if the required rate of returns is 8%?
- How much is the present value of this second investment cash flow if the payment is the same every year and the rate of return is the same 8%?
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