One of your clients estimates that he will need to have saved $500,000 in his Registered Retirement Savings Plan by the time that he retires in 24 years. He recently won $10,000 as a lottery prize, and invests $8,500 from his winnings into his RRSP. If he is able to invest $3,500 annually at the beginning of each year until his retirement, how much will he be able to accumulate when he retires if the investments earn 5.5% annually? By what amount will he exceed or fall short of his goal?

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To calculate the amount your client will be able to accumulate in his Registered Retirement Savings ... View the full answer