Nicole has just turned 41 and has accumulated $24 500 in her RRSP. She makes month-end...
Nicole has just turned 41 and has accumulated $24 500 in her RRSP. She makes month-end contributions of $400 to the plan and intends to do so until she retires at the age of 60. The RRSP will be allowed to continue to accumulate until she reaches the age of 65. If the RRSP earns 6% compounded monthly for the next 24 years, how much will her RRSP contain when she turns 65?
Homework Answers
Calculating Future Value at Age 60,
Using TVM Calculation,
FV = [PV = 24,500, PMT = 400, N = 228, I = 0.06/12]
FV = $245,820.47
Value at the age of 65 = 245,820.47(1 + 0.06/12)60
Value at the age of 65 = $331,574.98
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