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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.
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    2. I have heard that this formula requires compund interest with repayments but am not sure of how to do it
     
  2. jcsd
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