Who Will Have a Greater Accumulated Sum from Their Superannuation

question 106

Essay

Who will have a greater accumulated sum from their superannuation at retirement?
(a)Jane, who contributes $450 per month for 40 years and earns (after fees)an average of 7.5% pa (compounding monthly)in her industry fund; or
(b)John, who contributes $550 per month for 40 years and earns (after fees)an average of 6.5% pa (compounding monthly)in his retail fund.

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Definitions:

Operating Segments

Components of an enterprise that engage in business activities from which they may earn revenues and incur expenses, including revenues and expenses related to transactions with other components of the same enterprise.

Similar Economic Characteristics

A term used in financial analysis and consolidation to refer to entities or segments within enterprises that share similar economic environments, risks, and returns.

Combined

In financial terms, refers to the aggregation of financial data from several departments or business entities within a corporation to provide a complete financial profile.

Financial Statement Presentation

The method by which a company's financial data is arranged and reported to external parties, typically including balance sheets, income statements, and cash flow statements.