21 Future Value and Present Value of an Ordinary SimpleAnnuity

1. Sharleen contributed $400 towards an RRSP at the end of every month for four years at 2.5% compounded monthly. a. What is the accumulated value of the money at the end of four years? b. What is the interest amount earned? (2marks) 2. What would be the purchase price of an annuity that provides $500 at the end of every month for five years and earns an interest rate of 4% compounded monthly {2 marks )