Dr. Collins wants the value of her RRSP 30 years from now to have the purchasing power

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Dr. Collins wants the value of her RRSP 30 years from now to have the purchasing power of $500,000 in current dollars.

a. Assuming an inflation rate of 2% per year, what nominal dollar amount should Dr. Collins have in her RRSP after 30 years?

b. Assuming her RRSP will earn 4.5% compounded semiannually, what contributions should she make at the end of every three months to achieve the goal?

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Fundamentals Of Business Mathematics In Canada

ISBN: 9781259370151

3rd Edition

Authors: F. Ernest Jerome, Jackie Shemko

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Question Posted: Oct 21, 2020 04:53 AM

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Dr. Collins wants the value of her RRSP 30 years from now to have the purchasing power

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a The nominal amount in the RRSP shoul...View the full answer

Fundamentals Of Business Mathematics In Canada

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