Note :

In a General Annuity the interest period does not match the payment period.

That means that each question requires a two-step solution

Step 1 - find the equivalent interest rate to match the payment period. Do not round this interest rate

Step 2 - use the appropriate formula, Sn or An.

If you do not recognize the general annuity and skip Step 1, you will score 0% on Test 4.

Mr.

Merkel

has contributed

$94.00

at the end of each

three months

into an RRSP paying

6%

per annum compounded annually.

Question content area bottom

Part 1

How much will Mr.

Merkel

have in the RRSP after

15

years?

$enter your response here

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Part 2

How much of the above amount is interest?

$enter your response here

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)