Since the birth of his granddaughter, 18 years ago, Luis has deposited $250 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 3.50% compounded monthly for the first 6 years and 4.00% compounded monthly for the next 12 years. a. What was the accumulated value of the RESP at the end of 6 years? Round to the nearest cent b. What was the accumulated value of the RESP at the end of 18 years? Round to the nearest cent c. What was the amount of interest earned over the 18-year period? Round to the nearest cent
Since the birth of his granddaughter, 18 years ago, Luis has deposited $250 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 3.50% compounded monthly for the first 6 years and 4.00% compounded monthly for the next 12 years. a. What was the accumulated value of the RESP at the end of 6 years? Round to the nearest cent b. What was the accumulated value of the RESP at the end of 18 years? Round to the nearest cent c. What was the amount of interest earned over the 18-year period? 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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Hello this is every important so can you please help me and get it right? It’s due in 2 hours and I’m stuck so please help asap
Transcribed Image Text:Since the birth of his granddaughter, 18 years ago, Luis has deposited $250 at the
beginning of every month into a Registered Education Savings Plan (RESP). The interest
rate on the plan was 3.50% compounded monthly for the first 6 years and 4.00%
compounded monthly for the next 12 years.
a. What was the accumulated value of the RESP at the end of 6 years?
Round to the nearest cent
b. What was the accumulated value of the RESP at the end of 18 years?
Round to the nearest cent
c. What was the amount of interest earned over the 18-year period?
Round to the nearest cent
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