Randall wants to accumulate $750,000 in his RRSP by the end of his 30-year working career. What should be his initial year-end contribution if he intends to increase the contribution by 3% every year and the RRSP earns 5.25% compounded annually?

Learning Objectives

• Acquire knowledge on the functionality and benefits of contributing to and the development of the Registered Retirement Savings Plan (RRSP) through time.
• Determine the essential starting investments to fulfill a particular financial target within an allotted time span.