Tom White has just started work at 18 years of age and intends to retire at 55. He will be saving $150 per month during his working life. He invests his money in a superannuation fund paying 8.5% p.a. compounding half- yearly. a) How much will he have in this fund when he retires? Provide a clear explanation of why you think this is a future/present value annunity question. (4 marks) b) On retirement, Tom rolls this money over into an allocated pension paying 6.4%p.a. compounding fortnightly. Calculate how much per fortnight he could withdraw, if the pension were to last 15 years. (3 marks) c) What is the outstandarding balance after 10 years? (2 marks) d) If an emergency withdrawal of an extra $25,000 was needed at the end of the 5th year, what effect would that have on how long the annuity would last? (4 marks)

"Get 15% discount on your first 3 orders with us"
Use the following coupon

Order Now