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Eric invested her savings into a Registered Retirement Savings Plan (RRSP) at an interest rate of 2.50% compounded semi-annually. After one year, her investment grew
Eric invested her savings into a Registered Retirement Savings Plan (RRSP) at an interest rate of 2.50% compounded semi-annually. After one year, her investment grew to $24,600; however, the interest rate on the RRSP changed to 2.75% compounded quarterly and remained constant for the next two years.
a. Calculate the original amount she invested into the RRSP.
b. Calculate the accumulated value of the investment at the end of three years (two years after the rate drop).
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