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Author Question: You want to accumulate $2,700,000 in your RRSP by your retirement date, which is30years from now. ... (Read 59 times)

xxxxxxxxxxxx

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on: Aug 7, 2023

Question 1

You plan to make annual deposits into a bank account that pays a6% nominal annual rate. You think inflation will amount to 2.80% per year. What is the expected annual real rate at which your money will grow?

◦

2.98%


◦

3.11%


◦

3.24%


◦

3.68%



Question 2

You want to accumulate $2,700,000 in your RRSP by your retirement date, which is30years from now. You will make 30 deposits into your plan, with the first deposit occurring today. The plan’s rate of return typically averages10%. You expect to increase each deposit by3% as your income grows with inflation. (That is, your second deposit will be3% greater than your first, the third will be3% greater than the second, etc.) How much must your first deposit at t = 0 be to enable you to meet your goal?

◦

$8,643.25


◦

$9,871.53


◦

$10,645.58


◦

$11,437.66

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by xxxxxxxxxxxx on Aug 7, 2023

ryanb

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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xxxxxxxxxxxx

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Reply 2 on: Aug 7, 2023
Excellent

essyface1

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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