Shannon invested $1,900 at the beginning of every 6 months in an RRSP for 11 years. For the first 8 years it earned interest at a rate of 3.70% compounded semi-annually and for the next 3 years it earned interest at a rate of 6.20% compounded semi-annually. a) a. Calculate the accumulated value of her investment at the end of the first 8 years. $55,140.60 $55,522.54 $35,005.05 $35,652.65 b) b. Calculate the accumulated value of her investment at the end of 11 years. $55,140.60 $55,522.54 $48,355.47 $35,652.65 c) c. Calculate the amount of interest earned from the investment. $13,722.54 $13,340.60 $12,419.72 $1,302.82

Shannon invested $1,900 at the beginning of every 6 months in an RRSP for 11 years. For the first 8 years it earned interest at a rate of 3.70% compounded semi-annually and for the next 3 years it earned interest at a rate of 6.20% compounded semi-annually. a) a. Calculate the accumulated value of her investment at the end of the first 8 years. $55,140.60 $55,522.54 $35,005.05 $35,652.65 b) b. Calculate the accumulated value of her investment at the end of 11 years. $55,140.60 $55,522.54 $48,355.47 $35,652.65 c) c. Calculate the amount of interest earned from the investment. $13,722.54 $13,340.60 $12,419.72 $1,302.82

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 10PROB

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