Question
Since the birth of his daughter, 19 years ago, Edward has deposited $150 at the beginning of every month into a Registered Education Savings Plan
Since the birth of his daughter, 19 years ago, Edward has deposited $150 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 5.40% compounded monthly for the first 11 years and 3.90% compounded monthly for the next 8 years.
a. What would be the accumulated value of the RESP at the end of 11 years?
Round to the nearest cent
b. What would be the accumulated value of the RESP at the end of 19 years?
Round to the nearest cent
c. What is the amount of interest earned during the 19 year period?
Round to the nearest cent
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
