Kiran is 22 today and his superannuation account contains exactly $10,000. Assume this balance will earn...

Kiran is 22 today and his superannuation account contains exactly $10,000. Assume this balance will earn an average return rate of 6% p.a. compounding semi-annually until his retirement at age 65. Calculate the investment returns (in dollars) this sum will earn in the final year before retirement.

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Expert Solution

We see that the investment returns earned in the final year is given as=10000*(1+6%/2)^(2*43)-10000*(1+6%/2)^(2*42)=7293.63739

jeff jeffy answered 2 years ago

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