SOLUTION: Compare the amounts at age 65 that would result from making an monthly deposit of $300 starting at age 16, or from making an monthly deposit of $1750 starting at age 50, to an RRSP

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Question 1132957: Compare the amounts at age 65 that would result from making an monthly deposit of $300 starting at age 16, or from making an monthly deposit of $1750 starting at age 50, to an RRSP that earns 3% interest per annum, compounded monthly. What is the total of the deposits in each situation? What should you do?
Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235)   (Show Source): You can put this solution on YOUR website!
the formula for the first would be T=300(1+(.03/12)^588-1/(.03/12), where the 588 is 49 years *12 months per year.
The deposit total is 300*588 or $176,400. The total will be $400951.68, rounding at the end only.
The second is T=1750(1+(.03/12))^180/(.03/12), and that is $54000 of deposits and a total of $68091.81
Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!

Compare the amounts at age 65 that would result from making an monthly deposit of $300 starting at age 16, or from making an monthly deposit of $1750 starting at age 50, to an RRSP that earns 3% interest per annum, compounded monthly. What is the total of the deposits in each situation? What should you do?
Correct answers: 

Can YOU now make a decision? 

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