Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Today is June 30 2021, and on this date, you have already accumulated $4,000 in your Sunsupersuperannuation account, and you have already accumulated $1,000 in

Today is June 30 2021, and on this date, you have already accumulated $4,000 in your Sunsupersuperannuation account, and you have already accumulated $1,000 in your Australian Super account. Today you are going to transfer the $4,000 in your Sunsuper account to your Australian Super account so that AustralianSuper can manage all of your retirement money. You decided to use Australian Super as they had relatively lower fees and better investment returns. You decide to invest your money using Australian Supers balanced investment strategy which is expected to earn a return equivalent to the Reserve Bank of Australia cash rate (as of June 30 2021) plus a margin of 5.90%. This interest rate is compounded monthly (assume this return is the same every period). The financial year ends on June 30 each year. Your employer will make contributions of $500 per month into your super account at the end of each month beginning on July 31 2021until 30 June 2068 (inclusive). In addition, you will make contributions of $100 per month into your super account at the end of each month beginning on September 30 2050 until June 30 2068 (inclusive). Given such contributions, your job is to determine the amount of money you will have in your superannuation account on June 30 2068.

Given such contributions, your job is to determine the amount of money you will have in your superannuation account on June 30 2068. Please report your answer and show all workings

*DO NOT use amortisation schedule to solve this question.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

0324002327, 978-0324002324

Students also viewed these Accounting questions

Question

Why should structure follow strategy instead of the reverse?

Answered: 1 week ago