Some people look forward to retiring from work by the age 65. Compare the amounts at age 65 that would result from making annual deposit of $1000 starting at age 20, or from making annual deposits of $3000 starting from age 50, to an RRSP that earns 6% interest per annum, compounded monthly. What are the totals of the deposits in each situation? What are the final amounts for both situations and state which one is more profitable.
So far by using the formula fv=[(1+i)^n-1]/ i
The RRSP balance from age 20 to age 65 is $212 743.51
The RRSP balance from age 50 to age 65 is $ 69 827.91
I'm having trouble explaining the totals of the deposits. Pls could some show me how to do it . Thanx
So far by using the formula fv=[(1+i)^n-1]/ i
The RRSP balance from age 20 to age 65 is $212 743.51
The RRSP balance from age 50 to age 65 is $ 69 827.91
I'm having trouble explaining the totals of the deposits. Pls could some show me how to do it . Thanx