Question
Since the birth of his daughter, 20 years ago, Monica has deposited $125 at the beginning of every month into a Registered Education Savings Plan
Since the birth of his daughter, 20 years ago, Monica has deposited $125 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 4.50% compounded monthly for the first 7 years and 3.80% compounded monthly for the next 13 years.
a. What would be the accumulated value of the RESP at the end of 7 years?
Round to the nearest cent
b. What would be the accumulated value of the RESP at the end of 20 years?
Round to the nearest cent
c. What is the amount of interest earned during the 20 year period?
Round to the nearest cent
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