To start saving for retirement, Alexandra opens an RRSP that earns interest at a rate of 4.9% compounded quarterly. Alexandra makes deposits of $430 at the end of every quarter for eleven years. At the end of the eleven years, Alexandra switches her deposits to $290 at the end of every month for 20 years. a. How much money does Alexandra have in this RRSP at the end of the 31 years? b. How much interest did Alexandra's RRSP earn?

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.