Alexandra had a balance of $2,000 in her RRSP. In addition to this, she invested $300 at the end of every 3 months for 6 years. Her RRSP earned 4.00% compounded quarterly for the first 4 years and 7.00% compounded quarterly for the rest of the period. a. What is the accumulated value of the balance of $2,000 at the end of the time period? Round to the nearest cent b. What is the accumulated value of the annuity at the end of the first 4 years? Round to the nearest cent c. What is the future value of the accumulated value from (b) at the end of the 6 years? Round to the nearest cent d. What is the accumulated value of the $300
Alexandra had a balance of $2,000 in her RRSP. In addition to this, she invested $300 at the end of every 3 months for 6 years. Her RRSP earned 4.00% compounded quarterly for the first 4 years and 7.00% compounded quarterly for the rest of the period. a. What is the accumulated value of the balance of $2,000 at the end of the time period? Round to the nearest cent b. What is the accumulated value of the annuity at the end of the first 4 years? Round to the nearest cent c. What is the future value of the accumulated value from (b) at the end of the 6 years? Round to the nearest cent d. What is the accumulated value of the $300
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 1E
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Alexandra had a balance of $2,000 in her RRSP. In addition to this, she invested $300 at the end of every 3 months for 6 years. Her RRSP earned 4.00% compounded quarterly for the first 4 years and 7.00% compounded quarterly for the rest of the period.
a. What is the accumulated value of the balance of $2,000 at the end of the time period?
Round to the nearest cent
b. What is the accumulated value of the annuity at the end of the first 4 years?
Round to the nearest cent
c. What is the future value of the accumulated value from (b) at the end of the 6 years?
Round to the nearest cent
d. What is the accumulated value of the $300.00 annuity for the next 2 years at 7.00% compounded quarterly?
Round to the nearest cent
e. How much did she have in the RRSP at the end of the time period?
Round to the nearest cent
f. What were her total earnings?
Round to the nearest cent
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