Asked by Julannah Cobbs on Jun 11, 2024
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An RRSP is now worth $223,000 after contributions of $2500 at the beginning of every six months for 16 years. What effective rate of return has the plan earned?
Effective Rate of Return
The actual annual interest earned or paid on an investment or loan, considering the effect of compounding.
RRSP
Registered Retirement Savings Plan, a Canadian financial retirement savings tool for individuals to hold investment assets and savings tax-deferred until withdrawal.
Contributions
Payments or services provided to a common fund or collection.
- Learn the procedure to determine the return on investment for various financial tools and loans.
- Employ financial computations to strategize for retirement and investment objectives.
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PS
Learning Objectives
- Learn the procedure to determine the return on investment for various financial tools and loans.
- Employ financial computations to strategize for retirement and investment objectives.