How Much More Will You Have in Your RRSP at Age

question 109

Short Answer

How much more will you have in your RRSP at age 65 if you begin annual $1,000 contributions to your plan on your 26^th birthday instead of on your 27^th birthday? Assume that the RRSP earns 8% compounded annually and that the last contribution is on your 65^th birthday.

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Definitions:

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, considering the strategies of other players, and no player has anything to gain by changing their own strategy unilaterally.

Mixed Strategy

A situation in game theory where a player chooses among several possible moves according to a probability distribution.

Troops

Military units or forces, especially those organized for land warfare.

Pure Strategies

In game theory, actions or sequences of moves that a player commits to in a strategic setting without randomness.