Asked by Robyn Brown on Apr 26, 2024
Verified
$2,000 will be contributed to an RRSP at the end of every six months for 20 years. What effective rate of return must the funds in the plan earn if it is to be worth $250,000 at the end of the 20 years?
Effective Rate of Return
A measure of the return on an investment that accounts for the effect of compounding over a specified time period.
Contributions
Payments or services provided by individuals or organizations to a common fund or project.
- Become proficient in the computation of return rates for assorted financial devices and loan types.
- Implement financial estimations for retirement planning and investment ambitions.
- Appraise the significance of compounding frequency in shaping the outcomes of investments and the overheads of loans.
Verified Answer
MW
Learning Objectives
- Become proficient in the computation of return rates for assorted financial devices and loan types.
- Implement financial estimations for retirement planning and investment ambitions.
- Appraise the significance of compounding frequency in shaping the outcomes of investments and the overheads of loans.
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