Richard contributed $1,100 at the end of every 3 months, for 3 years, into a Registered Retirement Savings Plan (RRSP) earning 2.50% compounded quarterly. a. What is the future value of the fund at the end of 3 years? Round to the nearest cent

Richard contributed $1,100 at the end of every 3 months, for 3 years, into a Registered Retirement Savings Plan (RRSP) earning 2.50% compounded quarterly. a. What is the future value of the fund at the end of 3 years? Round to the nearest cent

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Question

Richard contributed $1,100 at the end of every 3 months, for 3 years, into a Registered
Retirement Savings Plan (RRSP) earning 2.50% compounded quarterly.
a. What is the future value of the fund at the end of 3 years?
Round to the nearest cent

b. What is the amount of interest earned over the 3-year period?
Round to the nearest cent

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