Calculate the total after tax future value, at the end of 30 years, of the RRSP contribution and the tax savings.
A) $21,833.43
B) $22,836.77
C) $22,892.41
D) $26,317.93
E) $19,411.25

Question

Quizplus · Accepted Answer

Pre tax FV of RRSP contribution = 3000(1 + 0.07)³? = $22,836.77
After tax FV of RRSP = $22,836.77(1 - 0.15) = $19,411.25
FV of tax savings = 750(1 + 0.0525)³? = $3,481.16
Total after tax = $22,892.41

Calculate the Total After Tax Future Value, at the End