(SOLVED) Contributions of $116.09 are made at the beginning of every three months into an RRSP for 10 years.

Discipline: Finance

Type of Paper: Question-Answer

Academic Level: Undergrad. (yrs 1-2)

Paper Format: APA

Pages: 1 Words: 66

Question

Contributions of $116.09 are made at the beginning of every three months into an RRSP for 10 years.


What is the accumulated balance after 10 if interest is 3.9% compounded quarterly.


Expert Solution Preview


According to the question


Interest rate = 3.9%


This interest rate is compounded quarterly therefore monthly interest rate = 3.9 / 4 = 0.975%


Investment amount = $116.09


Duration of investment = 10 years


Total number of periods = 10 * 12 = 120 periods


Therefore

The amount =....