+598 Terri started an RRSP on March 1, 2016, with a deposit of $2000. She added $1800 on December 1, 2018, and $1700 on September 1, 2020. What is the accumulated value of her account on December 1, 2027, if interest is 7.5% compunded quarterly?
Any help would be great, need steps
Will start with this one. Please let know if you are there. If so, I will show you step by step how to do it.
OK. First you have figure out the number of quarters between Mar. 1, 2016 and Dec. 1, 2020, which comes to about 19 weeks. Then we the FV of the 1st deposit of $2,000, which comes to $2,846.52.
Next, we figure out the number of quarters for the 2nd deposit of $1,800 on Dec. 1, 2018 to Dec. 1, 2020, which comes to 8 quarters. Now, we have to find FV of the $1,800, which comes to $2,088.40.
Next, we have to find the no. of quarters from Sept. 1, 2020 to Dec. 1, 2020, which comes to 1 quarter. Now, will find the FV of $1,700 which comes to$1,731.88.
Now, we add the three FV together:$2,846.52+$2,088.40+$1,731.88=$6,666.80. Now, will find the FV of this amount for next 7 years, or 28 quarters, which comes to $11,215.29
