Question
1)Since the birth of his daughter, 19 years ago, Brooke has deposited $75 at the beginning of every month into a Registered Education Savings Plan
1)Since the birth of his daughter, 19 years ago, Brooke has deposited $75 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 3.90% compounded monthly for the first 10 years and 3.80% compounded monthly for the next 9 years.
a. What would be the accumulated value of the RESP at the end of 10 years?
b. What would be the accumulated value of the RESP at the end of 19 years?
c. What is the amount of interest earned during the 19 year period?
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Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
