Question
5, Assume that the investments within an RRSP will earn 5% compounded annually. What monthly contribution must be made to the RRSP for it to
5, Assume that the investments within an RRSP will earn 5% compounded annually. What monthly contribution must be made to the RRSP for it to grow to $750,000 in:
c. 25 years?
d. 30 years?
In each case, also calculate the total earnings within the RRSP. (Note that the total earnings increase proportionately more than the duration of contributions)
17, Mr. Bean wants to borrow $7500 for three years. The interest rate is 5.5% compounded monthly.
a. What quarterly payments are required on the loan?
b. What will be the balance owned on the loan at the start of the third year?
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