Question
You are saving for retirement. To live comfortably, you decide you will need to save $4,000,000 in your RRSP by the time you are
You are saving for retirement. To live comfortably, you decide you will need to save $4,000,000 in your RRSP by the time you are 65. Today is your 34th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into an RRSP account. If the interest rate is 6%, how much must you set aside each year to make sure that you will have $4,000,000 in the RRSP on your 65th birthday?
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
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