Superannuation question (1 Viewer)

[CopperPike]

Hey guys, could someone please explain how to get the answer to this question in maths in focus:

This question was asked back in 2013 in a thread and the answer was said to be $240 652.62 , but the new textbook says that the answer is $466 563.74. I have attached my working out so it would be great if I knew where I went wrong.

Thanks in advance for any help!

 

[jimmysmith560]

There was some talk about this question on this website

A superannuation fund paid 6% p.a. for the first 10 years and then 10%

A superannuation fund paid 6% p.a. for the first 10 years and then 10% p.a. after that. If Thanh put $5000 into this fund at the end of each year, how much would she have at the end of 25 years? Answer: $466 563.74

www.jiskha.com

Something to do with the “beginning of the year” part.

I’m not sure if this’ll help but I hope it does.

 

[Leadmen4y]

I worked it out, textbook is right. Your working out was right but you forgot the fact that after calculated , you need to compound it for another 15 years like this , adding that to your calculation of $5000 worth of super for the second calculation.

In addition, the website Jimmy mentioned did also point out that it is AT THE BEGINNING OF THE YEAR, meaning you need to sub 1.06 for a in your formula for Sn, as well as 1.1 for your second calculation.

Edit: fixing my latex mistakes lmao