1. Elmois planning to purchase a new car in exactly 4 years and anticipates the cost will equal $30,000. He expects to receive a bonus cheque from his employer this year and wants to deposit sufficient funds into his bank account one year from today so that he has enough savings to purchase his car. Assuming his savings account earns 5% per year, how much must Elmo deposit into his account?

2. Susan is planning for retirement, which she anticipates will occur in 20 years. She currently has $100,000 in savings in her Registered Retirement Savings Plan (RRSP). Her objective is to have $500,000 in her RRSP when she retires. Assuming she makes no additional deposits into her RRSP, what annual rate of return must Susan earn to achieve her objective?

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Q1 Future avlue to accumulate in 4 years 30000 Austin will deposit enough amount in bank 1 yea... View the full answer