Bill's retirement plan consists of contributing $130 at the end of each month into an RRSP....
Bill's retirement plan consists of contributing $130 at the end of each month into an RRSP. If the plan earns 4.4% compounded quarterly for the first ten years and 6% compounded semiannually thereafter, how much money will be in Bill's RRSP at the end of a thirty year term?
Homework Answers
$130 per month
1 year =130*12=1560
Quarterly compounding for first 10 years
A= I(1+r/m)^nm
1560(1+0.044/4)^10*4
1560(1+0.011)^40
2416.411
Semi annually
1560(1+0.06/2)20*2
1560(1+0.03)^40
5088.72
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