Question

Ali invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 5 years it earned interest at a rate of 3.50% compounded semi-annually and for the next 6 years it earned interest at a rate of 6.40% compounded semi-annually.

a. Calculate the accumulated value of his investment at the end of the first 5 years.

$63,900.39

$64,865.00

$22,733.34

$23,131.17

b. Calculate the accumulated value of her investment at the end of 11 years.

$63,900.39

$64,865.00

$54,239.94

$23,131.17

c. Calculate the amount of interest earned from the investment.

$18,665.00

$17,700.39

$12,756.23

$5,908.77

Answer 1