SOLUTION: i hope you can help me to solve this, by using geometric series. thank you! A sum of money is deposited into a bank account at the end of each month for 5 years. The account e

Algebra ->  Sequences-and-series -> SOLUTION: i hope you can help me to solve this, by using geometric series. thank you! A sum of money is deposited into a bank account at the end of each month for 5 years. The account e      Log On


   

Question 1172427: i hope you can help me to solve this, by using geometric series.
thank you!
A sum of money is deposited into a bank account at the end
of each month for 5 years. The account earns a monthly interest rate
of 1.75%. What is the compounding factor?
Superannuation is a long-term investment plan to help employees
in their retirement where employers make regular contributions to
the employees’ fund.
Answer by ikleyn(52788) About Me  (Show Source):
You can put this solution on YOUR website!
.

Let me make several notices regarding your post. 

1)  In my life, I saw several textbooks in Math, written in English (more than 10), but never saw this term "Superannuation".


    The standard term in Math textbooks is an "Ordinary Annuity saving plan", if I correctly understand the context.


    We, the tutors of this forum, are not professionals in Finance.

    Sometime (quite often) we are able to solve Finance problems

    until they are not deeply specialized in Finance and follow standard Math terminology - 

    - but we are not specialists in Finance to freely interpret their professional terminology.
    



2)  Same regarding this term "the compounding factor".


    +-----------------------------------------------------------------+
    |    Can you clarify PLEASE what do you mean using this term ?    |  
    |    (because in different sources of Finance I saw different     |
    !                     definitions).                               |
    +-----------------------------------------------------------------+



3)  The concluding part of the post starting from the word "Superannuation . . . " actually does not explain 

    anything for us - so it does not carry any sensical meaning.


In short, my questions are: 

    - Is the "Superannuation" the same as an "Ordinary Annuity saving plan" ?


    - Please clarify what "the compounding factor" means IN CONTEXT of YOUR PROBLEM.

Thank you.