1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Homework Help: Compound Interest With Repayments problem

  1. Sep 5, 2011 #1
    1. A 30 year old employee on a starting salary of $20 000 per year pays 5% of this into a superannuation scheme to which the employer also contributes 5% of the employee’s salary. If the fund is compounding at 5% p.a., find the lump sum payout when the employee retires at 60.
    Note: This solution is a value in current dollars. As the person’s wage increases each year, so will the lump sum amount, and it is therefore tied to the inflation rate.

    2. I have heard that this formula requires compund interest with repayments but am not sure of how to do it
  2. jcsd
Share this great discussion with others via Reddit, Google+, Twitter, or Facebook

Can you offer guidance or do you also need help?
Draft saved Draft deleted