Fred is about to have his 27^th birthday. He has set a goal of retiring at age 58 with $1,000,000 in his RRSP. For planning purposes, he is assuming that his RRSP will earn 8% compounded annually.
a) What contributions on each birthday from age 27 to 57 inclusive will be required to accumulate the desired amount in his RRSP?
b) If he waits five years before starting his RRSP, what contributions on each birthday from age 32 to 57 inclusive will be required to reach the target?

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The Answer of Fred is about to have his 27^th birthday. He has set a goal of retiring at age 58 with $1,000,000 in his RRSP. For planning purposes, he is assuming that his RRSP will earn 8% compounded annually. a) What contributions on each birthday from age 27 to 57 inclusive will be required to accumulate the desired amount in his RRSP? b) If he waits five years before starting his RRSP, what contributions on each birthday from age 32 to 57 inclusive will be required to reach the target?

Fred Is About to Have His 27th Birthday

Fred Is About to Have His 27^th Birthday