Erin deposited $1,400 at the end of every month into an RRSP for 7 years. The interest rate earned was 3.50% compounded semi-annually for the first 4 years and changed to 3.75% compounded monthly for the next 3 years. What was the accumulated value of the RRSP at the end of 7 years? $613,104.66| (×) $133,796.02 Round to the nearest cent
Erin deposited $1,400 at the end of every month into an RRSP for 7 years. The interest rate earned was 3.50% compounded semi-annually for the first 4 years and changed to 3.75% compounded monthly for the next 3 years. What was the accumulated value of the RRSP at the end of 7 years? $613,104.66| (×) $133,796.02 Round to the nearest cent
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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Please match the answer to the answe in green box in the image. Please answer step by step how you got all the numbers and the calculations you did provide in detail.
Transcribed Image Text:Erin deposited $1,400 at the end of every month into an RRSP for 7 years. The interest
rate earned was 3.50% compounded semi-annually for the first 4 years and changed to
3.75% compounded monthly for the next 3 years. What was the accumulated value of
the RRSP at the end of 7 years?
$613,104.66
(x)
$133,796.02
Round to the nearest cent
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