Mr. and Mrs. Fox have each contributed $1825.00 per year for the last eight years into RRSP accounts earning 6.93% compounded annually. Suppose they leave their accumulated contributions for another five years in the RRSP at the same rate of interest.
a) How much will Mr. and Mrs. Fox have in total in their RRSP accounts?
b) How much did the Fox's contribute?
c) How much will be interest?

Question

Quizplus · Accepted Answer

The Answer is a) FV_n = 3650.00 a) FV<sub>n</sub> = 3650.00 = 3650.00(10.2339355) = $37 354.00 b) Contribution = 8(3650.00) = $29 200.00 c) Interest = 52219.77 - 29200.00 = $23 019.77

= 3650.00(10.2339355) = $37 354.00
a) FV<sub>n</sub> = 3650.00 = 3650.00(10.2339355) = $37 354.00 b) Contribution = 8(3650.00) = $29 200.00 c) Interest = 52219.77 - 29200.00 = $23 019.77

b) Contribution = 8(3650.00) = $29 200.00
c) Interest = 52219.77 - 29200.00 = $23 019.77

Mr and Mrs