Edward Johnson Decided to Open Up a Superannuation Account

question 92

Multiple Choice

Edward Johnson decided to open up a Superannuation account.He will invest $1,800 per year for the next 35 years.Deposits to the Superannuation account will be made via a $150 payroll deduction at the end of each month.Assume that Edward will earn 8.75% annual interest compounded monthly over the life of his Super contribution.How much will he have at the end of 35 years?

• A)$125,250
• B)$250,321
• C)$363,000
• D)$414,405

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Definitions:

Pay Secrecy

Policies or practices that restrict or prevent employees from sharing information about their salaries or wages with each other.

Distrust

A feeling of doubt about some person or thing's honesty, reliability, or capability.

Canadian Human Rights Act

A federal law prohibiting discrimination.

Red-Circled Employees

Workers whose pay exceeds the maximum of the pay range for their job grade, often as a result of salary adjustments or a change in job structure.