Since the birth of his granddaughter, 18 years ago, Luis has deposited $250 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 3.50% compounded monthly for the first 6 years and 4.00% compounded monthly for the next 12 years. a. What was the accumulated value of the RESP at the end of 6 years? Round to the nearest cent b. What was the accumulated value of the RESP at the end of 18 years? Round to the nearest cent c. What was the amount of interest earned over the 18-year period? Round to the nearest cent
Since the birth of his granddaughter, 18 years ago, Luis has deposited $250 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 3.50% compounded monthly for the first 6 years and 4.00% compounded monthly for the next 12 years. a. What was the accumulated value of the RESP at the end of 6 years? Round to the nearest cent b. What was the accumulated value of the RESP at the end of 18 years? Round to the nearest cent c. What was the amount of interest earned over the 18-year period? Round to the nearest cent
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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