QUESTION 4: Maurice is an electrician who is 22 years old and has commenced work after a four-year apprenticeship. He
has started to think about superannuation.
He has chosen a fund that is offering an interest rate of 4.1 % p. a. compounded quarterly. He is currently
on a gross salary of $48000
(a)
By law, employers must contribute 95% of the employee's yearly gross salary to a
superannuation fund. Show that the quarterly contributions of the employer are $1 140
[2]
(b)
Maurice also contributes $800 a quarter into his superannuation fund. Calculate the amount
that his superannuation fund will have by the time he reaches retirement age of 67.
[3]