If You Wish to Supplement Your Retirement by Saving $200000

question 41

Multiple Choice

If you wish to supplement your retirement by saving $200000 in 25 years,how much more would you have to save monthly if you saved the money outside rather than in an RRSP? Consider that investment returns should provide a yield of 8.5 percent compounded monthly and your tax rate is 30 percent,so the after tax return would be 5.95 percent.

• A)$9.71
• B)$87.63
• C)$97.05
• D)$101.05

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Definitions:

Labor Productivity

The amount of goods and services produced per hour of labor, serving as an important indicator of economic efficiency and competitiveness.

Pizzeria

A restaurant specializing in the preparation and sale of pizza.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced (output) with the number of hours worked to produce those goods and services.

Capital Per Worker

The total capital stock of an economy divided by the number of labor workers, influencing productivity.