Brett deposits $1,300 at the end of every 3 months in an RRSP that is earning 5.40% compounded semi-annually. For the RRSP to accumulate to $38,000, calculate the following: a. How many deposits will he have to make? b. How long will he have to make these deposits? years months Julia wants to accumulate at least $40,000 by depositing $1,400 at the end of each month into a fund that earns interest at 6.25% compounded monthly. a. How many deposits does he need to make in order to reach his goal? b. How long will it take Julia to reach his goal? year(s) month(s)
Brett deposits $1,300 at the end of every 3 months in an RRSP that is earning 5.40% compounded semi-annually. For the RRSP to accumulate to $38,000, calculate the following: a. How many deposits will he have to make? b. How long will he have to make these deposits? years months Julia wants to accumulate at least $40,000 by depositing $1,400 at the end of each month into a fund that earns interest at 6.25% compounded monthly. a. How many deposits does he need to make in order to reach his goal? b. How long will it take Julia to reach his goal? year(s) month(s)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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Brett deposits $1,300 at the end of every 3 months in an RRSP that is earning 5.40% compounded semi-annually. For the RRSP to accumulate to $38,000, calculate the following:
a. How many deposits will he have to make?
b. How long will he have to make these deposits?
years months
Julia wants to accumulate at least $40,000 by depositing $1,400 at the end of each month into a fund that earns interest at 6.25% compounded monthly.
a. How many deposits does he need to make in order to reach his goal?
b. How long will it take Julia to reach his goal?
year(s)
month(s)
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