QUESTION 5 - This question has TWO parts (a), and (b).

Simon was born in February 1966 and is currently 58 years old. He plans to retire at 67. Since starting his job in 2000, Simon has accumulated $300,000 in his superannuation fund, thanks to his employer's contributions. He earns an annual salary package of $150,000 (including SGC from his employer of 12%).

Q5 Part (a)Calculate the expected balance of Simons' superannuation fund at his planned retirement age of 67. You can assume the superfund achieves a net return after fees of 10% p.a. on the balance, his salary increases by 2% p.a., and the employer continues the superannuation guarantee contribution rate of 12% for his remaining working years. You should consider the 15% concessional tax on superannuation contributions where appropriate.