What Is the Amount of the Initial Deposit Required to Have

question 69

Short Answer

What is the amount of the initial deposit required to have an RRSP account of $1 million in 30 years, if deposits are made at the end of each month, the plan allows for a 2% adjustment for inflation, and money earns 4% compounded monthly?

---

Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a specified time frame.

At The Money

A situation in options trading where the strike price of an option is equal to the market price of the underlying asset.

Out Of The Money

Describes an options contract that would not yield a profit if exercised at the current market level.

In The Money

Describes an option with an intrinsic value where a call option's strike price is below the market price of the underlying asset or a put option's strike price is above.