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Question 6 of 11 Brian deposited $900 at the end of every month into an RRSP for 7 years. The interest rate earned was 5.75%
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Answer #1

Effective monthly rate for first 4 years =(1+5.75%/2)^(1/6)-1 =0.473525%
PMT =900
Number of Periods =12*4 =48
Value at end of 4 years =PMT*((1+r)^n-1)//r) =900*((1+0.473525%)^48-1)/0.473525%) =48375.6663

Rate per month for next 3 years =6%/12 =0.5%
Accumulated value at end of 7 years =48375.6663*(1+0.5%)^36+900*((1+0.5%)^36-1)/0.5%) =93292.71

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