Question
1. For your retirement you want to have enough funds in your RRSPs to provide an income stream of $23,000 for 30 years. How much
1. For your retirement you want to have enough funds in your RRSPs to provide an income stream of $23,000 for 30 years. How much money would you need to have accumulated if your RRSPs averaged a real return of four percent per year?
(Round to the nearest thousand) a. $406,000 b. $1,290,000 c. $398,000 d. $384,000
2.
Ruby is expecting her first child next month and would like to have $80,000 saved for university education when the child turns 17. If Ruby can get a 6.2 percent annual return on the education savings for her child, approximately how much does she need to start saving at the end of each month once the baby is born?
a.
$226
b.
$232
c.
$222
d.
$2786
3.
Joe and Bill are the same age and starting their careers. Each plans to retire at age 65 and each wants to have $600,000 in his RRSP account by then. If they both get seven percent annual return on their RRSP savings, which one will be closer to reaching his goal?
a.
Joe if he starts saving $200 a month when he is 25 years old
b.
Joe if he starts saving $150 a month when he is 20 years old
c.
Bill if he starts saving $1000 a month when he is 45 years old
d.
Bill if he starts saving $800 a month when he is 45 years old
4.
For each resident of Canada, their CPP entitlement is calculated based on their
a.
number of years up to age 65 as an adult resident of Canada.
b.
number of years as working adult resident of Canada with income under $70,000.
c.
income earned each year between the YBE and YMPE.
d.
income earned above the YMPE each year.
Please help with the four questions,
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