Brett deposits $1,300 at the end of every 3 months in an RRSP that is earning 5.40% compounded semi-annually. For the RRSP to accumulate to $38,000, calculate the following: a. How many deposits will he have to make?   b. How long will he have to make these deposits? years  months       Julia wants to accumulate at least $40,000 by depositing $1,400 at the end of each month into a fund that earns interest at 6.25% compounded monthly. a. How many deposits does he need to make in order to reach his goal?     b. How long will it take Julia to reach his goal? year(s)   month(s)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 8E
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Brett deposits $1,300 at the end of every 3 months in an RRSP that is earning 5.40% compounded semi-annually. For the RRSP to accumulate to $38,000, calculate the following:
a. How many deposits will he have to make?
 
b. How long will he have to make these deposits?
years  months
 
 
 
Julia wants to accumulate at least $40,000 by depositing $1,400 at the end of each month into a fund that earns interest at 6.25% compounded monthly.
a. How many deposits does he need to make in order to reach his goal?
 
 
b. How long will it take Julia to reach his goal?
year(s)
 
month(s)
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