Early Bird RRSPs

Every February, financial institutions advertise their various RRSP products. While most people contribute just before the deadline, RRSP sellers point out the advantages of contributing early$-$greater returns because of compounding. In our example of the future value of annuities, we found that contributing $$2,000$ each year at the end of the year would compound to $$226,566$ in $30$ years at $8\%.$ Suppose you made the contribution at the beginning of each year. How much more would you have after $30$ years?