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Jerry makes $110,000 a year and is paid another 15% on top of his wage into superannuation. Jerrys wage will increase every year by 2%. Jerry currently has $65,000 dollars in superannuation. Superannuation dividends are 7% per annum after tax.
a. What will Jerrys wage be in 30 years (not including the 15% superannuation- based only on the 2% increase per year on the wage of $110,000)
b. How much superannuation will Jerry have accumulated in 30 years (including the return on the $65,000 currently in superannuation + the 15% of his wage paid into superannuation each year)
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