Mr. Braun wants the value of his RRSP 25 years from now to have the purchasing power
Question:
Mr. Braun wants the value of his RRSP 25 years from now to have the purchasing power of $400,000 in current dollars.
a. Assuming an inflation rate of 2.5% per year, what nominal dollar amount should Mr. Braun have in his RRSP after 25 years?
b. What contributions should he make at the end of every three months to achieve the goal if his RRSP earns 5.5% compounded semiannually?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
a Use formula 82 to adjust PV 400000 for n 25 years of inflation at i 25 per year b Th...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
Question Posted:
Students also viewed these Mathematics questions
-
At the end of every three months, Sheila invested $375 into an account earning interest at 3% compounded monthly. What is the accumulated value in the account after eight years?
-
Payments at the end of every three months are made on a loan carrying an interest rate of 8% compounded quarterly. What type of annuity is this?
-
If $2,000 is invested at the end of every three months, what will be the total value after 10 years? The investments earn 13% compounded annually.
-
Fill in the missing amounts for the following bank reconciliation: Practice Exercise3 Bank Reconciliation March 31,20 Bank Statement Balance $3,764.00 Add: Deposit in transit $4,031.00 Deduct:...
-
A vapor-compression refrigeration system, with a capacity of 15 tons, has superheated Refrigerant R-134a vapor entering the compressor at 15oC, 4 bar and exiting at 12 bar. The compression process...
-
1. Do you agree with Facebooks philosophy of automatically enrolling users in new features without their knowledge or consent? Why or why not? 2. What concerns might a Facebook user have with the Tag...
-
If the 60-mm diameter shaft is subjected to an axial force of 5 kN, determine the average shear stress developed in the shear plane where the collar A and shaft are connected. 5 kN 60 mm 100 mm 2.5...
-
Maurice Browne recorded the following times assembling a watch. Determent (a) The average time (b) The normal time (c) The standard time taken by him, using a performance rating of 95% and a personal...
-
Consider a project that requires an investment of $1700 in the first year, but will generate a NPV of $80. Calculate the profitability index value of this project.
-
Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its...
-
Georgina is about to retire with $188,000 in her RRSP. She will use the funds to purchase an annuity providing payments of $6000 at the end of each quarter. What will be the annuity's term if the...
-
A magazine offers a one-year subscription rate of $63.80 and a three-year subscription rate of $159.80, both payable at the start of the subscription period. Assuming that you intend to continue the...
-
Rank the molecules in order of the amount of energy they contain, from most to least: (a) ATP, (b) starch, (c) glucose.
-
Three- and six-month T-Bills are trading at 0.98 and 0.96 per dollar of face, respectively. The three-month forward price of a three-month T-Bill with a face of $100 is then closest to:
-
What is the unit of work in the MKS system of units? What is the unit of torque in the MKS system of units? Can work and torque have the same units? N.m What is the torque of a 20 N perpendicular...
-
Most of us will be (or are) expected to give both informal and formal presentations during the course of our work. - address the following questions about conducting effective business presentations....
-
Most of us will be (or are) expected to give both informal and formal presentations during the course of our work. Based on the course content and research you have conducted on your own through...
-
Create a Java class that generates the following 10 numbers (belonging to a number pattern) and displays 5 values per row The pattern: 1 1 2 4 7 13 24 44 81 149... The output must be as follows: 1 1...
-
Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath Scale Gym Scale East Region unit...
-
Let X be a random variable taking on values a1, a2, . . . , pr with probabilities p1, p2, . . . , pr and with E(X) = μ. Define the spread of X as follows: This, like the standard deviation, is a...
-
Use the contingency-table method to perform the test in Problem 13.1? Gynecology In a 1985 study of the relationship between contraceptive use and infertility, 89 of 283 infertile women, compared...
-
Use the contingency-table method to perform the test in Problem 13.1? Gynecology In a 1985 study of the relationship between contraceptive use and infertility, 89 of 283 infertile women, compared...
-
Use the normal-theory method to test for significant differences in contraceptive-use patterns between the two groups? Gynecology In a 1985 study of the relationship between contraceptive use and...
-
There are 42 locations throughout the northeast region with deposits totaling $3.2bil. If you were Kiamarie's vice president, how would you expect her to choose between Gagne's Nine Events of...
-
Why is succession planning essential in an organization? 2. What is the need for succession planning? 3. What do you think are the challenges to succession planning? 4. How can employees contribute...
-
Two activities/obligations/responsibilities that might be added to an updated version of the job description for an HR professional: How would you go about monitoring changes in laws and regulatory...
Study smarter with the SolutionInn App