How Much Larger Will the Value of an RRSP Be

question 180

Short Answer

How much larger will the value of an RRSP be at the end of 25 years if the RRSP earns 9% compounded monthly instead of 9% compounded annually?
In both cases a contribution of $1,000 is made at the end of every three months.

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Definitions:

Capital Accounts

Ledger accounts that show the investment amounts of owners or shareholders in a company.

Loss On Realization

occurs when the proceeds from selling an asset or settling a liability are less than the carrying amount on the books.

Noncash Assets

Assets that cannot be easily converted into cash, such as real estate, equipment, and investments.

Capital Balances

The amount of money each partner has invested in a partnership or the equity value in partnerships' accounts.