Sam is single, has just turned 30 years of age, and would like to retire comfortably on his 80th birthday. He is working as an Administrative assistant and has no super or Private Health Insurance to this stage. His ordinary times earnings are $94,000 and he also receives an irregular $4,000 commission per year, and this is expected to remain the same indefinitely. Sam has analysed the available superannuation funds, which have a long term return of 6% after inflation.
Sam is single, has just turned 30 years of age, and would like to retire comfortably on his 80th birthday. He is working as an Administrative assistant and has no super or Private Health Insurance to this stage. His ordinary times earnings are $94,000 and he also receives an irregular $4,000 commission per year, and this is expected to remain the same indefinitely. Sam has analysed the available superannuation funds, which have a long term return of 6% after inflation.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Sam is single, has just turned 30 years of age, and would like to retire comfortably on his 80th birthday. He is
working as an Administrative assistant and has no super or Private Health Insurance to this stage. His
ordinary times earnings are $94,000 and he also receives an irregular $4,000 commission per year, and this is
expected to remain the same indefinitely. Sam has analysed the available superannuation funds, which have a
long term return of 6% after inflation.
Transcribed Image Text:a. Calculate the minimum annual dollar value that his employer needs to contribute into his
superannuation fund under the Superannuation Guarantee Scheme and explain the significance of
'ordinary times earnings' with respect to mandatory employer super contributions.
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