Bianca invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 8 years it earned interest at a rate of 4.70% compounded semi-annually and for the next 3 years it earned interest at a rate of 6.40% compounded semi-annually. a. Calculate the accumulated value of his investment at the end of the first 8 years. $63,385.77 $63,822.64 $40,223.97 $41,169.23 b. Calculate the accumulated value of her investment at the end of 11 years. $63,385.77 $63,822.64 $55,258.15 $41,169.23 c. Calculate the amount of interest earned from the investment. $17,622.64 $17,185.77 $16,133.72 $1,488.92
Bianca invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 8 years it earned interest at a rate of 4.70% compounded semi-annually and for the next 3 years it earned interest at a rate of 6.40% compounded semi-annually. a. Calculate the accumulated value of his investment at the end of the first 8 years. $63,385.77 $63,822.64 $40,223.97 $41,169.23 b. Calculate the accumulated value of her investment at the end of 11 years. $63,385.77 $63,822.64 $55,258.15 $41,169.23 c. Calculate the amount of interest earned from the investment. $17,622.64 $17,185.77 $16,133.72 $1,488.92
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Bianca invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 8 years it earned interest at a rate of 4.70% compounded semi-annually and for the next 3 years it earned interest at a rate of 6.40% compounded semi-annually.
a. Calculate the accumulated value of his investment at the end of the first 8 years.
$63,385.77
$63,822.64
$40,223.97
$41,169.23
b. Calculate the accumulated value of her investment at the end of 11 years.
$63,385.77
$63,822.64
$55,258.15
$41,169.23
c. Calculate the amount of interest earned from the investment.
$17,622.64
$17,185.77
$16,133.72
$1,488.92
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