5)John a recent LaSalle College graduate, 25 years old has a goal to build his savings in an RRSP. He is working in IT and expects to receive an annual bonus of $6000. He has a long term plan to contribute every year his $6,000 annual bonus into an RRSP which will pay 5% interest.

How much will his RRSP be worth at the age of 60?

John decides that he needs $1,000,000 in his RRSP at age 60 to feel secure about retirement. How much extra does he need at age 60 to reach his $1,000,000 RRS goal?

(c) John decides the $1,000,000 RRSP at age 60 is essential, so in addition to the $6,000 annual contribution, he will contribute extra on a monthly basis, so that he reaches $1,000,000 at age 60. How much extra does he need to save every month to meet his $1,000,000 goal?