Help with Superannuation problem (1 Viewer)

[PandaChen6996]

A man invests $40 a week in a superannuation fund. The interest rate for the first 10 years is 10%pa and for the remaining 20 years is 12%pa. If the interest is worked out monthly, how much is the investment worth after 30 year (assume 52 weeks in a year)

Answer: $563164.6
Cheers

 

[Drongoski]

Is $40 invested each week at the beginning or the end of each week?

Also, if interest is worked out monthly, then presumably the weekly contributions accrue no interest in the month of contribution. But hold on a minute: 1 year has 12 months, and 4 weeks don't make 1 month; so consideration a lot more complicated or problem is ill-defined.

 

[PandaChen6996]

The question didn't state

 

[Carrotsticks]

The question didn't state

That makes things more difficult because the answer depends on when the investment is made.

Generally with superannuation problems, the investment is made at the beginning of the week or month etc.

 

[FrankXie]

and even more unusual, the interest is computed monthly while the investment is made weekly. Note that 1month=30/7weeks, which is not a whole numbher.

 

[Carrotsticks]

and even more unusual, the interest is computed monthly while the investment is made weekly. Note that 1month=30/7weeks, which is not a whole numbher.

As inaccurate as it may be, I'm somewhat certain that the author of the question had intended for 1 month --> 4 weeks.