2

Robert invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 7 years it earned interest at a rate of 4.90% compounded semi-annually and for the next 4 years it earned interest at a rate of 6.90% compounded semi-annually.

a. Calculate the accumulated value of his investment at the end of the first 7 years.

$65,436.61

$66,091.24

$34,573.27

$35,420.31

b. Calculate the accumulated value of her investment at the end of 11 years.

$65,436.61

$66,091.24

$55,049.72

$35,420.31

c. Calculate the amount of interest earned from the investment.

$19,891.24

$19,236.61

$17,061.83

$2,829.41