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QUESTION 1 Garrett opened an RRSP account and deposited $ 1 , 5 0 0 into it . He then deposited $ 6 0 0

QUESTION 1 Garrett opened an RRSP account and deposited $1,500 into it. He then deposited $600 at the end of the 1st year and $725 at the end of the 2nd year, into the account. The RRSP was earning 3.00% compounded quarterly. A)What is the accumulated value of the investments at the end of the 2nd year? B)What is the accumulated value of the investment at the end of 5 years? QUESTION 2 Evan was supposed to make a payment of $3,250 in 3 years and another payment for $1,300 in 5 years to Loon Company as part of a payment plan.
Instead, he is trying to reach an agreement with the company where he would pay an upfront amount now, and an amount of $1,200 in 5 years. Assume that money is worth 6.00% compounded quarterly A) Calculate the equivalent value of the $3,250 payment and the $1,300 payment today. B) Calculate the upfront amount that he should pay under the alternative payment agreement so that the payments are equivalent.

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