You are 44 years old, you wish to retire at 65.
You earn $75,000 a year and already have $100,000 in your super account.
You have an average annual super rate of 5.1%.
Calculate by formula the future value of your superannuation if your contributions continue to be 9% of your income but your income increases on average by 3% per annum.
The only formula given is,
Sn = a[(1+r)^n -1] ÷ r
Where a = repayment, (monthly, fortnightly etc)
r = growth rate, eg
nominal interest rate per annum ÷ number of interest periods per year
and n =
time in years * number of interest periods per year
dont even know if thats the right formula to be using, i think a new formula needs to be developed im not sure
thanks for the help anyway guys