Question
Since the birth of his daughter, 21 years ago, Shannon has deposited $75 at the beginning of every month into a Registered Education Savings Plan
Since the birth of his daughter, 21 years ago, Shannon has deposited $75 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 4.70% compounded monthly for the first 8 years and 4.00% compounded monthly for the next 13 years.
A. What would be the accumulated value of the RESP at the end of 8 years?
B.What would be the accumulated value of the RESP at the end of 21 years?
C. What is the amount of interest earned during the 21 year period?
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Introduction To Estimating Economic Models
Authors: Atsushi Maki
1st Edition
0415589878, 978-0415589871
