Dr. Collins wants the value of her RRSP 30 years from now to have the purchasing power of $500,000 in current dollars.
a. Assuming an inflation rate of 2% per year, what nominal dollar amount should Dr. Collins have in her RRSP after 30 years?
b. AssumingherRRSPwillearn8.5%compounded semiannually, what contributions should she make at the end of every three months to achieve the goal?