Michael, 55, has accumulated $300,000 in his RRSP. He expects to retire at 65. If he continues to contribute $10,000 annually at the beginning of each year and his investments earn 6% compounded annually, what will be the approximate value of his RRSP at retirement?

Question: Michael, 55, has accumulated $300,000 in his RRSP. He expects to retire at 65. If he continues to contribute $10,000 annually at the beginning of each year and his investments earn 6% compounded annually, what will be the approximate value of his RRSP at retirement?

Answer options:

• Approximately $550,000
• Approximately $720,000 ✅ Approximately $840,000
• Approximately $910,000

Correct answer: Approximately $840,000

Explanation: Calculations: Future value of current RRSP: $300,000 * (1.06)^10 = $537,258. Future value of 10 annual contributions: $10,000 * (((1.06)^10 - 1) / 0.06) * 1.06 = $139,716. Total approximately $537,258 + $139,716 = $676,974. A more precise calculator will account for start of year payments. Using a financial calculator (PV=300k, PMT=10k, I/Y=6, N=10, P/YR=1, PMT BEG), FV ≈ $840,490.