document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1132957>Question 1132957</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #750123 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=750123\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 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.<BR>\n" );
document.write( "The deposit total is 300*588 or $176,400.  The total will be $400951.68, rounding at the end only.\r<BR>\n" );
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document.write( "The second is T=1750(1+(.03/12))^180/(.03/12), and that is $54000 of deposits and a total of $68091.81 </SPAN>\n" );
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