Fort St 2 010 2 U Tri~s

Jerry joins a Superannuation fund, investing $P at the beginning of every year at 9%

p.a. compounding annually.

1. Write an expression for the value of his investment A1 at the end of the first
year. [I ]

11. Write an expression for the value of his investment A2 at the end of the second
year. [l]

m. Show that, after n years, the value of his investment A,, is given by
109P
A,, = - - (1.09" - 1) [2]
9

1v. If, after 30 year, he wishes to collect $1 ,000,000, calculate the value of $P to the
nearest dollar. [ 1]
buker-2u-2 014'

Jessica plans to work for the next ten years.

During that time she wants to save $50 000.
She decides to invest a fixed amount of money at the beginning of each month
during this time.
Interest is paid at a fixed rate of 6% p.a. compounded monthly.

(i) Let M be the monthly investment in dollars. 2

Show that the total investment R after 10 years is given by
R = M [ (J .005) + (J .005)2 + (1.005)3 + ... + (1.005)' 20 ] .

(ii) Find the amount M needing to be deposited each month to reach her goal. 3
Sy dney G r::u nnur 2 016 2 U - q2

A sum of $20 000 is invested at a fixed rate of interest, compounded annually. After [!]
5 years t he principal has grnwn to $28 567.
F ind the annu al rate of interest to the nearest tenth of one percent.
Fo rt St 2 01.5 2 U Tri~s

A person invests $800 at the beginning of each year in a superannuation fund.

Compound interest is paid at 10% per annum on the investment. The first $800 is to be
invested at the beginning of 2016 and the last is to be invested at the beginning of
2045 . Calculate to the nearest dollar:

1. The amount to which the 2016 investment w ill have grown by the beginning of
2046 2

11. The amount to which the total investment will have grown by the beginning of
2046 2