Annuity superannuation (1 Viewer)

[Bob99]

A sum of $1500 is invested at the end of each year for 15 years at 8% pa. Find the amount of superannuation
available at the end of 15 years.

For this question, I assumed that at the end of the first year, interest will be applied to the $1500 invested at the end of the first year. However if I make that assumption, then I get the wrong answer according the the worked solution I have been provided with. (Provided answer is $40728.17)
(But I am getting $43986.42)

HOWEVER, if I redo the question but I DONT apply the interest on the $1500 at the end of the first year, then I get the correct answer.

SO, could someone please explain to me if I am supposed to apply interest at the end of the first year in questions like these, or am I not supposed to, or am i making a sillly mistake.
Thanks.

 

[cossine]

So we have year zero no money is invested at the start. At the beginning of the first year that is end of year 0 there is 1500 dollars but since it was not invested at beginning of year zero it does not earn interest.

So we have series like follows:

1500 + 1500(1.08) + ... + 1500(1.08)^14

=> 1500 (1-1.08^15) /(1-1.08) = 40728.17 (approx)

 

[Bob99]

So we have year zero no money is invested at the start. At the beginning of the first year that is end of year 0 there is 1500 dollars but since it was not invested at beginning of year zero it does not earn interest.

So we have series like follows:

1500 + 1500(1.08) + ... + 1500(1.08)^14

=> 1500 (1-1.08^15) /(1-1.08) = 40728.17 (approx)

TYSM for your explanation!!