We Will Make Annual RRSP Contributions at the End of Every

Multiple Choice

We will make annual RRSP contributions at the end of every year for 35 years and each contribution is going to be 8% larger than the previous one. Our goal is to have $2,000,000 in 35 years. The RRSP will earn 13% compounded annually. How large will the first contribution be?

A) $1,048
B) $1,483
C) $1,746
D) $2,295
E) $3,742