Jawad Makes Semi-Annual Contributions of $2000 Starting on His 27th

question 87

Multiple Choice

Jawad makes semi-annual contributions of $2000 starting on his 27th birthday. How much will he accumulate in his RRSP by age 60, if RRSP earns 8% compounded semi-annually and no contribution is made on his sixtieth birthday?

• A) $615 535
• B) $640 156
• C) $565 324
• D) $587 937
• E) $669 842

---

Definitions:

Marginal External Cost

The additional cost incurred by society as a whole due to one more unit of a good being produced, not accounted for by the producer.

Competitive Price

The price at which a product or service is sold that is reasonably close to the prices of competing products or services in the same market.

Socially Optimal Levels

Situations or outcomes in an economy that are considered the best from the standpoint of society as a whole, often involving efficient allocation of resources.

Effluent Dumping

The discharge of pollutants or waste materials into the environment, particularly into water bodies, without adequate treatment.