I am currently completing a Maths C assignment mainly focused on sequences and one of the questions asked us to algebraically solve how much money someone would accrue in a superannuation account with a 4.8% interest rate pa which is paid weekly and the person deposits $80 per week for 30 years. So far I have created an excel spreadsheet and used that to find the total amount but I'm not sure how to develop a formula involving the number of weeks. If anyone could help it would be much appreciated.
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Developing a formula for superannuation with weekly payments
- Thread starter Dolzo
- Start date
Did you use 1 year = 52 weeks and rate of .048/52 paid weekly?So far I have created an excel spreadsheet and used that to find the total amount
but I'm not sure how to develop a formula involving the number of weeks.
What amount did you end up with?
Close...should be $4259.44Yeah, I did that and after one year there was $4264.06.
a = annuity amount (80)
i = periodic interest factor (.048/52)
n = number of periods (30*52)
f = future value (?)
f = a[(1+i)^n - 1] / i