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Quarterly Contributions of $1000 Will Be Made to an RESP

Question 5

Short Answer

Quarterly contributions of $1000 will be made to an RESP for 15 years. Assuming that the investments within the plan grow at 8% compounded quarterly, how much will the TFSA be worth after 15 years if the contributions are made:
a. At the end of each quarter? b. At the beginning of each quarter?
c. By what percentage does the answer to Part (b) exceed the answer to Part (a)?

Correct Answer:

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a) $114,05...

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