Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. both john and mary are aged 20 now. john plans to

Both John and Mary are aged 20 now. John plans to contribute $100 per month in...

50.1K

Verified Solution

Question

Finance

Both John and Mary are aged 20 now. John plans to contribute$100 per month in advance into his superannuation fund for 20 yearsand stop contributing thereafter. Mary plans to start contributiing$200 per month in advance into her superannuation fund at her 40thbirthday until she retires. They both plan to retire at age 60. Ifthe annual rate of return is 06.00%, what are the accumulatedvalues of their superannuation accounts at retirement?

Answer & Explanation Solved by verified expert
3.6 Ratings (662 Votes)
Lets calculate the deposits as two cash flow strings and then accumulated value by adding both Computation of Future value of Johns fund Formula for FV of ordinary annuity    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Both John and Mary are aged 20 now. John plans to contribute$100 per month in advance into his superannuation fund for 20 yearsand stop contributing thereafter. Mary plans to start contributiing$200 per month in advance into her superannuation fund at her 40thbirthday until she retires. They both plan to retire at age 60. Ifthe annual rate of return is 06.00%, what are the accumulatedvalues of their superannuation accounts at retirement?

Other questions asked by students

Algebra
1.2K views

4 6x 5y 20 654 3 2 1 61 51 4 3 2 ON S...

Basic Math
1.2K views

Using the non working spouse method what should be the life insurance need if the...

Operations Management
1.2K views

Assignment 2- NejoWeCleaner! – Small Business on a Small Island Neil and Joan a Missile and sister...

Civil Engineering
1.2K views

1.   If I want a woven fabric to be manufactured within the minimum or maximum thicknesses...

Accounting
1.2K views

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as...

Accounting
1.2K views

Your manufacturing facility produces three styles of coffee tables for its customers. All three of the...

Accounting
1.2K views

Fore Farms reported a pretax operating loss of $210 million for financial reporting purposes in 2021....

Algebra
1.2K views

A Super Happy Fun Ball is dropped from a height of 17 feet and rebounds...

Accounting
1.2K views

10) Kansas Enterprises purchased equipment for $74,000 on January 1, 2024....

Accounting
1.2K views

Required information [The following information applies to the questions displayed below] Use the following selected...

Accounting
1.2K views

On December 15, 2015 Ms. Evans sold an antique vase for $4,100. She paid $1,100...

Accounting
1.2K views