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Question 1184861: Alexis wants to have saved $600 000 by the time she retires at age 60. She is turning 46 in the next week and has accumulated in her RRSP accounts. Assuming she can continue to get a 6% annual return on her RRSP investments, how much does she need to keep saving at the end of each month to reach her goal?
A) $2262
B) $1467
C) $2102
D) $396
Found 2 solutions by Theo, ikleyn:
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! you need to provide how much she has already accumulated in her account.
you then need to subtract that from 600,000.
you would then use the following formula to find out what the payment needs to be.
a = (x * .005) / (1.005 ^ 168 - 1)
for example:
if you have 200,000 already saved, then x would be equal to 600,000 minus that = 400,000 and the formula would become:
a = 400000 * .005) / (1.005 ^ 168 - 1) = 1524.943698.
.005 is equal to .06 / 12.
that's the interest rate per month required by the formula that is dealing with 168 months.
she needs the money when she becomes 60.
she is now 46.
60 - 46 = 14 years * 12 = 168 months from now.
replace x with whatever (600,000 minus whatever value she has already saved, and the fomula will give you your answer.
Answer by ikleyn(52776)  (Show Source):
You can put this solution on YOUR website! .
Alexis wants to have saved $600 000 by the time she retires at age 60. She is turning 46 in the next week
and has accumulated in her RRSP accounts. Assuming she can continue to get a 6% annual return on her RRSP investments,
how much does she need to keep saving at the end of each month to reach her goal?
A) $2262
B) $1467
C) $2102
D) $396
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One key important info / (number) is missed in your post.
This number is the value of the amount, just accumulated in her RRSP account.
Fix your post, then re-post to the forum.
PLEASE do not post it to me personally.
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