Question
Option A: Invest your $10 000 in a registered education savings plan with the Canadian government. You will receive a simple interest return of 20%
Option A: Invest your $10 000 in a registered education savings plan with the Canadian government. You will receive a simple interest return of 20% paid once.
Option B: Invest your $10 000 in an income focused account with a simple annual interest rate of 5.5%.
Option C: Invest you $10 000 in a growth focused account with a compound interest rate of 5.4% compounded monthly.
You make an initial investment of $10,000, over the course of 18 years what would the most profitable option be?
After selecting the best investment option, how much would you need to invest each month to reach a goal of $150,000 at the end of the 18 year period?
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