Your RRSP will pay an average of 7% per year After you retire when you are 68 years old you plan to withdraw $31,000/year for 32 years. How much money would you need to have saved in your bank account by the time you turn 67 so you can receive payments of $31,000/year?

Your RRSP will pay an average of 7% per year After you retire when you are 68 years old you plan to withdraw $31,000/year for 32 years. How much money would you need to have saved in your bank account by the time you turn 67 so you can receive payments of $31,000/year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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Question

You plan to retire when you are 67 years old.
You plan to start saving money for retirement,
via RRSP when you are 25 years old.
Your RRSP will pay an average of 7% per year
After you retire when you are 68 years old you
plan to withdraw $31,000/year for 32 years.
How much money would you need to have
saved in your bank account by the time you turn
67 so you can receive payments of
$31,000/year?
Choose the range which is most accurate.
O a. $403,000 - $406,000
O b.
$406,000 - $409,000
O c.
$412,000 - $415,000
d. NONE of the RANGES are CORRECT
e.
$400,000-$403,000

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