Use this chart to answer the following questions. Assume in every case that you make annual end-of-year contributions to an RRSP for 25 years. The RRSP earns 75% compounded annually. Compared to a "base case" of constant contributions of $3000, how much larger (in percentage terms) will the value of your RRSP be after 25 years if you increase the payments by: a. 1% per year? (Do not round the intermediate calculations. Round your answer to two decimal places.) The value of the RRSP will be I % b. 2% per year? (Do not round the intermediate calculetions. Round your answer to two decimal places.) The value of the RRSP will be c. 4% per year? (Do not round the intermediote calculations. Round your answer to two decimal places.) The value of the RRSP will be %
Use this chart to answer the following questions. Assume in every case that you make annual end-of-year contributions to an RRSP for 25 years. The RRSP earns 75% compounded annually. Compared to a "base case" of constant contributions of $3000, how much larger (in percentage terms) will the value of your RRSP be after 25 years if you increase the payments by: a. 1% per year? (Do not round the intermediate calculations. Round your answer to two decimal places.) The value of the RRSP will be I % b. 2% per year? (Do not round the intermediate calculetions. Round your answer to two decimal places.) The value of the RRSP will be c. 4% per year? (Do not round the intermediote calculations. Round your answer to two decimal places.) The value of the RRSP will be %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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