You Want to Accumulate $2,500,000 in Your RRSP by Your

question 113

Multiple Choice

You want to accumulate $2,500,000 in your RRSP by your retirement date,which is 35 years from now.You will make 30 deposits into your plan,with the first deposit occurring today.The plan's rate of return typically averages 9%.You expect to increase each deposit by 2% as your income grows with inflation.(That is,your second deposit will be 2% greater than your first,the third will be 2% greater than the second,etc.) How much must your first deposit at t = 0 be to enable you to meet your goal?

• A)$8,718.90
• B)$9,154.84
• C)$9,612.58
• D)$10,093.21

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Definitions:

Coordinate Tolerance

The allowable deviation from the true position specified for a feature in relation to a referenced coordinate system.

Positional Tolerance

A geometric dimensioning and tolerancing (GD&T) concept that specifies the allowable variation in the position of a feature relative to its ideal position.

Tolerance Zone

The permissible limit or limits of variation in a physical dimension or property.

Bilateral Tolerances

Tolerances that allow variation both above and below the specified dimension.