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Liz’s grandmother is depositing $1,200 at the end of each quarter into a RESP to save...

Liz’s grandmother is depositing $1,200 at the end of each quarter into a RESP to save for Liz’s University education. The RESP earns interest at 5.00% compounded quarterly. Liz will start university in seven years at which time her grandmother will stop contributing.

a. How much will grandmother have accumulated in the RESP in seven years?

b. How much can Liz withdraw from her RESP at the end of each quarter for four years?

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IF ANY QUERY, FEEL FREE TO ASK THEM AND GET RESOLVED Solution a. Amount in RESP at end of 7 years Future Value Formula FV(int

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