Asked by Neisha Bethly on Apr 27, 2024
Verified
Martina's RRSP earns 12% compounded monthly and her goal is to accumulate $1,000,000 by making deposits of $4,100 at the end of every year. How many years will it take to reach her goal?
A) 24 years
B) 29 years
C) 33 years
D) 47 years
E) 125 years
Compounded Monthly
A method of calculating interest where the interest earned each month is added to the principal, thus earning interest in subsequent months.
RRSP
Registered Retirement Savings Plan, a Canadian account for holding savings and investment assets with tax benefits for retirement.
Deposits
Funds placed into an account at a financial institution for safekeeping or to earn interest.
- Calculate the necessary regular contributions to reach a particular financial target within a specified period.
- Examine multiple investment tactics to fulfill long-term financial aspirations.
Verified Answer
Learning Objectives
- Calculate the necessary regular contributions to reach a particular financial target within a specified period.
- Examine multiple investment tactics to fulfill long-term financial aspirations.
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