Reference no: EM133119605

Peter is at the age of 25, and his friend David (an insurance/mutual fund broker) offered him a retirement savings plan investment opportunity. Please help Peter to calculate his initial investment amount for the financial product based on the following information.

Peter made the initial investment of XXX Canadian dollar at the age of 25;

When Peter turns his age to 45years (20years), Paul can invest additional cnd$2,000 each year before his retirement at the age of 60 (Another 15 years) for the life insurance;

When Peter retires at the age of 65, Peter finally can get annual amount of Cnd$17,000 for 20 years when Peter turns to the age of 85;
David/Insurance company assume the annual return is 6%

Please do the calculation How much cnd$ Peter made the deposit for the investment at the age of 25 (suggest to draw the timeline for this case) illustrate the numbers based on time value calculations step by step;