Since the birth of her granddaughter, 21 years ago, Kevin has deposited $150 at the beginning of every month into a Registered Education Savings Plan (RESP). The inter rate on the plan was 3.75% compounded monthly for the first 10 years and 4.25% compounded monthly for the next 11 years. a. What was the accumulated value of the RESP at the end of 10 years? $0.00 Round to the nearest cent b. What was the accumulated value of the RESP at the end of 21 years? c. What was the amount of interest earned over the 21-year period? $0.00 Round to the nearest cent
Since the birth of her granddaughter, 21 years ago, Kevin has deposited $150 at the beginning of every month into a Registered Education Savings Plan (RESP). The inter rate on the plan was 3.75% compounded monthly for the first 10 years and 4.25% compounded monthly for the next 11 years. a. What was the accumulated value of the RESP at the end of 10 years? $0.00 Round to the nearest cent b. What was the accumulated value of the RESP at the end of 21 years? c. What was the amount of interest earned over the 21-year period? $0.00 Round to the nearest cent
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Transcribed Image Text:Since the birth of her granddaughter, 21 years ago, Kevin has deposited $150 at the
beginning of every month into a Registered Education Savings Plan (RESP). The interest
rate on the plan was 3.75% compounded monthly for the first 10 years and 4.25%
compounded monthly for the next 11 years.
a. What was the accumulated value of the RESP at the end of 10 years?
$0.00
Round to the nearest cent
b. What was the accumulated value of the RESP at the end of 21 years?
c. What was the amount of interest earned over the 21-year period?
$0.00
Round to the nearest cent
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