Year 12 Finance - Combining Superannuation and withdrawals

1) When Monique retires she has A=$1752581.18 in her account.
When she retires, she ceases all deposits and now withdraws 6000 dollars at the end of every month from the same account, which continues to earn an interest rate of 3% per annum, compounding monthly. Show that after n withdrawals, the account has Mn=2400000-(2400000-A)rn where r=1.0025. 

2) For how many months will Monique be able to make the full withdrawal amount of $6000. 

These questions are each worth five marks. Please use as much working out as possible, I don't understand finance at all. This is from the year 12 HSC adv maths syllabus.


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  • Can you clarify how you got r^n=3.707? I don't understand what step you took to get there.

    • Also the number 647418.82? Where did that come from

    • Martin Martin

      that is the 647418 / 2400000

  • Martin Martin

    647418 = 2400000-A

The answer is accepted.
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