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.

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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