#### Definition:

RRSP is a Canadian method of encouraging employees to save money for their retirement. Under this method, the employee is liable to pay the tax amount until the savings is withdrawn by him/her. RRSP may be an asset, investment, bond, stocks or even mutual funds.

#### Example :

A person have 14 years for his retirement. His current available savings in RRSP is $3,000 and he could borrow an extra $2,000 to make a $5,000 RRSP contribution and he is in 15% tax bracket. Find his registered retirement savings plan fund available at his retirement?

##### Given,

P=$3000
p=14 years
i=15 / 100
C=$5000

##### To Find,

RRSP Funds Available at Retirement

##### Solution :

Substitute the given values in the formula,
RRSP = (3000 * (1+0.15)^{14} ) + (5000 * (1+0.15)) * (((1+0.15)^{14} - 1) / 0.15 )
= 21227.12+232902.05
= 254129.17
= 254129.17 $