Reference no: EM133095149

Question - Gary Dahl will be 30 years old next year. He comes up with a plan to save for his retirement at 67 years of age. Currently, he has saved $40 000 in a balanced superannuation account earning 8.3 per cent annually. He also has invested an inheritance of $50 000 in a money market account earning 5.25 per cent per annum and plans to leave it as part of his retirement savings. He has set himself a retirement target of $2 000 000. How much must be deposited in his superannuation account each year to reach his target? If Gary is earning $60 000 a year and, in addition, 9 per cent of his salary is deposited into his superannuation by his employer, would Gary have to make further contributions to enable him to reach his goal?