Don Has Just Turned 43 and Has Accumulated $34 500

question 102

Multiple Choice

Don has just turned 43 and has accumulated $34 500 in his RRSP. He makes month-end contributions of $300 to the plan and intends to do so until he retires at the age of 60. The RRSP will be allowed to continue to accumulate until he reaches the age of 65. If the RRSP earn 8% compounded monthly for the next 22 years, what amount will his RRSP contain, when he reaches age 65?

• A) $129 539.17
• B) $192 993.38
• C) $227 493.81
• D) $199 361.27
• E) $392 354.65

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Definitions:

Compromising

A process of making concessions to settle differences where both parties involved give up something to reach an agreement.

Problem-Solving

The process of finding solutions to difficult or complex issues.

Mediation

A conflict resolution process where a neutral third party facilitates negotiations between disputing parties to help them reach a mutually acceptable agreement.

Voluntarily

Acting based on one's own free will or choice, rather than due to pressure or obligation.