Lindsay is looking to put $25,000 at the end of each year into her Registered Retirement Savings
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Question:
- Lindsay is looking to put $25,000 at the end of each year into her Registered Retirement Savings Plan (RRSP) for the next 20 years.
- She believes that she can earn 4% interest, compounded monthly. Answer both and show calculations
- a. How much will Lindsay have saved after 20 years?
- b. If Lindsay decides to withdraw the entire amount in one lump sum in 20 years,
- c. what would be the amount that she would receive after taxes, assuming her effective tax rate is 32% at that time?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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