Appendix D
Institute of Actuaries of Australia
Effect of Monthly Versus Annual Contributions
_________________________________________________________________
Accumulated Amount ($) Accumulated Amount ($)
9% p.a. interest 8% p.a. interest
Period ____________________________________________________________
(Years) Monthly Annual Monthly Annual
Contributions Contributions Contributions Contributions
_________________________________________________________________________
| 5 |
7,473 |
7,182 |
7,294 |
7,040 |
| 10 |
18,972 |
18,232 |
18,012 |
17,384 |
| 15 |
36,664 |
35,233 |
33,761 |
32,583 |
| 20 |
63,885 |
61,392 |
56,900 |
54,914 |
| 25 |
105,769 |
101,641 |
90,899 |
87,727 |
| 30 |
170,211 |
163,569 |
140,855 |
135,940 |
| 35 |
269,364 |
258,853 |
214,527 |
206,780 |
| 40 |
421,924 |
405,459 |
322,108 |
310,868 |
The amounts in the table represent the amount accumulated at the end
of the period shown using the following assumptions:
- Contributions of $100 per month (at the end of each month) or $1200
per year (at the end of each year)
- Interest rates of 9% or 8% as indicated.
In each case the accumulated amount based on monthly contributions is
approximately 3.5% or 4% higher than the accumulated amount based on annual
contributions after all time periods.
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