Sam Will Contribute $200 to His RRSP at the End

question 186

Multiple Choice

Sam will contribute $200 to his RRSP at the end of each month for 15 years and then raise his monthly contribution to $500 at the end of each month for the subsequent 20 years. If his investments earn 11.7% compounded monthly, what will be the value of the investments after the last $500 contribution is made 35 years from now?

• A) $1,186,877
• B) $572,207
• C) $1,471,930
• D) $521,751
• E) $285,054

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Definitions:

Meniscus

The curved surface of a liquid in a tube or those fibrocartilaginous structures in the knee joint that reduce friction and absorb shock.

Hyaline

A type of smooth, translucent cartilage found in various parts of the body such as the nose, trachea, and larynx, providing support with some flexibility.

Elastic Fiber

Protein fibers found in the extracellular matrix of connective tissue, giving elasticity and resilience to tissues like skin, lungs, and blood vessels.