Using the Constant-Growth Annuity Chart The NEAssets feature at the beginning of this section describes how to access the Constant-Growth Annuity Chart available in this student textbook's Online Learning Centre (OLC). Use this chart to answer the following questions. Assume in every case that you make annual end-of-year contributions to an RRSP for 25 years. The RRSP earns 7.5% compounded annually. Compared to a "base case" of constant contributions of $3000, how much larger (in percentage terms) will the value of your RRSP be after 25 years if you increase the payments by:
a) 1% per year?
b) 2% per year?
c) 4% per year?

Question

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The Answer of Using the Constant-Growth Annuity Chart The NEAssets feature at the beginning of this section describes how to access the Constant-Growth Annuity Chart available in this student textbook's Online Learning Centre (OLC). Use this chart to answer the following questions. Assume in every case that you make annual end-of-year contributions to an RRSP for 25 years. The RRSP earns 7.5% compounded annually. Compared to a "base case" of constant contributions of $3000, how much larger (in percentage terms) will the value of your RRSP be after 25 years if you increase the payments by:
a) 1% per year?
b) 2% per year?
c) 4% per year?

Using the Constant-Growth Annuity Chart the NEAssets Feature at the Beginning