Fay contributed $3000 per year to her RRSP on every birthday from age 21 to 30 inclusive. She then ceased employment to raise a family and made no further contributions. Her husband Fred contributed $3000 per year to his RRSP on every birthday from age 31 to 64 inclusive. Assuming that both plans earn 8% compounded annually over the years, calculate and compare the amounts in their RRSPs at age 65.
What will be the amount in an RRSP after 25 years if contributions of $2000 are made at the beginning of each year for the first 10 years, and contributions of $4000 are made at the beginning of each year for the subsequent 15 years? Assume that the RRSP will earn 8% compounded quarterly.