Question
Since the birth of her granddaughter, 18 years ago, Tara has deposited $200 at the beginning of every month into a Registered Education Savings Plan
Since the birth of her granddaughter, 18 years ago, Tara has deposited $200 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 4.75% com pounded monthly for the first 8 years and 5.00% compounded monthly for the next 10 years.
a. What was the accumulated value of the RESP at the end of 8 years?
b. What was the accumulated value of the RESP at the end of 18 years?
c. What was the amount of interest earned over the 18-year period?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Louis C. Gapenski
4th Edition
0030754828, 978-0030754821
