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Need Help with the attached question - Its a basic time value of money concept Question1 Superanmiation is a way to save for your retirement
Need Help with the attached question - Its a basic time value of money concept
Question1 Superanmiation is a way to save for your retirement The money comes from contributions made into your superanmation fumd by your employer and ideally, added to with your own money. Sometimes the goverament will add to it through co-contributions and a low income contrbution Your employer must pay 9.5% of your salary into a superannuation fund. In Australia this is the law how woiks An Australian worker aged 35 and currently earning $65,000 per anmm, has an established superannuation account, into which her employer pays 95% of her salary each year but she does not conmbute any extra money to the fund (a co-contnbution). She has calculated that she needs her superanmation fimd to earm $35,000 per amum on retirement and she expects to live for another 20 years after retirement. Assume 1. She will retire at 65 and can access ber superamuation immediately 2. Her Superannuation fund will generate 5% return (compounded annually) over the long term. 3. Her income remains $65,000 per annm. Steps to complete to undertake the investigation Calculate: a. Howmuch money will be in the Superanmuation account by the time she retires at 65? b. What will her income be if the account generates 5% return? c. How nmuch money should be in the superannuation account if she wants to earn $35,000 per year from the account after her retirement? d. What age would she hare to work till in order to generate $35,000 p.a as a pension after her retirement? e Using excel or similar, graph the Total amount (T) against time in years (n). In a short statement of no more than 300 words, use your indings to provide advice for youmg people entering the .Specifically address the issue of co contibution .The limitations evident in your calculations. .Any assumptions that you have madeStep by Step Solution
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