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The government gives you a $1,000 kick start payment to you KiwiSaver account. If you were 20 and invested the money in an Aggressive fund at 10% pa compounding six-monthly; How much money would you have when you retire at 65?
 Sep 6, 2013
 #1
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I'm tired, I'm posting the quick version.

C = P*(1+I) N C is your answer, P is your start up cash, I is the interest rate per compounding period, N is the number of compounding periods in the term.
C = 1000*(1.05) 90
C = $80,370.37

Albert Einstein once joked that the most powerful force in the universe was compound interest. He might have been onto something.
 Sep 6, 2013
 #2
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Rather C = 1000(1.1)^90 = $ 5 313 022.61 (10 % per one compounding)
 Sep 6, 2013

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