Question
Isabella (35 yr. old) and Chris (45 yr. old) graduated from Ontario Tech and began working in the family business. The first year, Isabella began
Isabella (35 yr. old) and Chris (45 yr. old) graduated from Ontario Tech and began working in the family business. The first year, Isabella began putting $3,600 per year in a registered retirement saving plan (RRSP) and contributed to it for a total of 10 years. After that time, she made no contributions until she retired at age 65. Chris did not start contributing to his RRSP until he was 55, but he continued making contributions of $3,600 per year until he retired at age 65. Assuming that both Isabella and Chris receive 8% interest compounded quarterly per year, how much will Isabella have at retirement? How much did she contribute in total? How much will Chris have at retirement? How much did he contribute in total? [4 pts] (Show your calculations).
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