Compound Interest With Repayments problem

[tHeUnk0wn]

1. A 30 year old employee on a starting salary of $20 000 per year pays 5% of this into a superannuation scheme to which the employer also contributes 5% of the employee’s salary. If the fund is compounding at 5% p.a., find the lump sum payout when the employee retires at 60.
Note: This solution is a value in current dollars. As the person’s wage increases each year, so will the lump sum amount, and it is therefore tied to the inflation rate.
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2. I have heard that this formula requires compund interest with repayments but am not sure of how to do it

 

[LightHero]

The formula for calculating the future value of a lump sum investment with compound interest and regular payments is: FV = P (1+r)^n + PMT [(1+r)^n - 1] / r, where FV is the future value, P is the initial investment, r is the interest rate, n is the number of compounding periods, and PMT is the regular payment.