Question 1

Joe plans to contribute $5,000 to his RRSP at the beginning of each year for the next 5 years. He estimates that he will receive an average rate of 8 % on his deposits. He would like to know how much money he will have in his RRSP at the end of 5 years.

Question 2

Guy Martin wants to withdraw $400 from his account each year, at the end of every year,

for the next five years. He doesn't want any money to be left in his account after the last

withdrawal. His account earns 8% interest per year. How much should Guy have in his

account now?

Question 3

This time, Guy Martin wants to withdraw $400 a year at thebeginningof every year. Again,

he doesn't want any money to be left in the account after the last withdrawal. His account

earns 5% interest per year. How much should he have in his account now?