A superannuation fund paid 6% p.a. for the first 10 years and then 10% p.a. after that. If Thanh put $5000 into this fund at the end of each year, how much would she have at the end of 25 years?

Question

Answer: $466 563.74

Answer 1

amount after 10 years
= 5000( 1.06^10 - 1)/.06 = 65,903.40
let this side for 15 years at 10%
= 65903.40(1.1)^15 = 275,297.26

consider a 2nd annuity of 5000 for 15 years at 10%
= 5000( 1.10^15 - 1)/.10 = 158,862.41

for a total of 275,297.26 + 158,862.41 = $341,201.23

how did you get $466 563.74

Answer 2

I never got $466 563.74. The answers in the textbook I use said that

Answer 3

No, the textbook says Thanh put $5000 into this fund at the BEGINNING of each year