Part C Future and Present Values of Cash Flows and Lump Sums

The following information is for solving Questions 24 to 27

In order to save for their retirement in 35 years in the future, a couple plan to make equal payments into a Registered Retirement Saving Plan (RRSP) in a balanced mutual fund. How much would they have 35 years in their RRSP account based on the following scenarios?

Question 24

Biweekly payments of $50 (assuming 6 percent compounded monthly)?

Question 24 options:

	$310,463.71
	$71,591.69
	$155,674.85
	$81,443.50
	None of the Above

Question 25

Monthly payment of $100 (assuming 5.5 percent compounded monthly)?

Question 25 options:

	$276,714.76
	$553,503.50
	$60,800.94
	$127,674.85
	None of the Above

Question 26

Annual payments of $1,200 (assuming 6.5 percent compounded annually)?

Question 26 options:

	$319,554.87
	$964,013.27
	$158,516.33
	$641,768.12
	None of the Above

Question 27

Weekly payments of $25 (assuming 7 percent compounded weekly)?

Question 27 options:

	$196,550.67
	$98,230.44
	$45,289.02
	$1,380,176.46