You have just turned 25 years of age and accepted your first position after graduation You understand the power of compound interest and wish to save for early retirement at age 55 Required How much should you contribute annually to your registered retirement savings plan (RRSP), starting one year ...

The annual contribution required in order to ha ...

You have just turned 25 years of age and accepted your first position after graduation. You understand

Question:

You have just turned 25 years of age and accepted your first position after graduation. You understand the power of and wish to save for early retirement at age 55.
Required:
How much should you contribute annually to your registered retirement savings plan (RRSP), starting one year from now, in order to accumulate $2 million by the time you retire? Assume an interest rate of (a) 8% and (b) 16%.
Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...