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Nikola just turned 4 3 years old and is planning to retire at age 6 3 . She has already saved $ 2 0 1
Nikola just turned years old and is planning to retire at age She has already saved $ in her RRSP If she continues to
contribute $ at the beginning of every month, how much money will be in her RRSP at retirement if it can earn compounded
monthly? No deposit is made the day she turns
a Use the compound interest formula, to find the future value of the current amount in the investment.
At retirement, the $ will have grown to
b Determine the annuity type.
Ordinary Simple Annuity
Ordinary General Annuity
Simple Annuity Due
General Annuity Due
c Identify the following pieces of information to be used to calculate the future value of the annuity.
Periodic Payment:
Number of Payments per Year:
Total Number of Payments:
Annual Interest Rate:
Number of Compoundings per Year:
d Determine the total value of the investment at retirement incorporating your answer from part a above
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