Course NotesPracticePast Paper Archive

Finance · Guided Practice

Pension Savings

5 questions with answers and video solutions. Try each one before revealing the answer.

1
An employee earns £36000\displaystyle \pounds 36000 a year and contributes 5%\displaystyle 5\% of it to a pension.
The employer contributes a further 3%\displaystyle 3\% of the salary.
Calculate the total annual amount paid into the pension.
Video solution coming soon
2
A Lifetime ISA pays a government bonus of 25%\displaystyle 25\% on each deposit.
A saver deposits £4000\displaystyle \pounds 4000 in a year.
Calculate the total added to the account that year.
Video solution coming soon
3
A pension pot of £240000\displaystyle \pounds 240000 pays an effective rate of interest of 3%\displaystyle 3\% per year.
£15000\displaystyle \pounds 15000 is withdrawn at the end of each year.
Calculate the value of the pot after 1\displaystyle 1 year.
Give your answer to the nearest penny.
Video solution coming soon
4
A pension pot of £180000\displaystyle \pounds 180000 pays an effective rate of interest of 3%\displaystyle 3\% per year.
£12000\displaystyle \pounds 12000 is withdrawn at the end of each year.
Calculate the value of the pot after the second year.
Give your answer to the nearest penny.
Video solution coming soon
5
2025 Q6
4 Marks

You must refer to the information on 'Lifetime ISA' given in the pre-release material when answering this question.

Morgan opens a Lifetime ISA with an online bank. The account has an annual effective rate of interest of 3.25%.
Morgan makes a deposit of £2500 into the account on 1 January 2024. The government bonus is paid into her account on the first day of the following month.
She makes no further deposits in 2024.
Calculate the accumulated value of Morgan's Lifetime ISA on 31 December 2024.

All practice topics