Jawad makes semi-annual contributions of $2000 starting on his 27^th birthday.How much will he accumulate in his RRSP by age 60,if RRSP earns 8% compounded annually and no contribution is made on his sixtieth birthday?

Question

Quizplus · Accepted Answer

The future value of an annuity formula is used to calculate the total amount accumulated. Since contributions are semi-annual, the interest rate per period is 4% (8% annually), and the number of periods is 66 (33 years x 2). The correct calculation results in $618,606.

Jawad Makes Semi-Annual Contributions of $2000 Starting on His 27th

Jawad Makes Semi-Annual Contributions of $2000 Starting on His 27^th