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Ingrid contributed $3500 per year for seven years into an RRSP account earning 5.94% compounded semi-annually....

  1. Ingrid contributed $3500 per year for seven years into an RRSP account earning 5.94% compounded semi-annually. After the seven years, she stopped the contributions, but left the money in the RRSP for another five years, still at 5.94% compounded semi-annually. Show caculation use BA II plus calculator.

    . You are encouraged to draw the timelines for yourself to help you with setting up the logic of how to solve the problem.

  1. How much does Ingrid have in her account at the end of this twelve year period?

        b) How much interest was earned over the 12 year period?

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Answer #1

A) calculation till 7 yrs

calculation after 7 yrs

so, at the end of 12 years period it have the amount of $46661.44 in her account

B)

Over the period of 12 years the total interest earned is $18661.44.   ( 48661.44 - 28000 )

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