Question

mit: 01:22:29 Question 6 of 13 ons on 1 (3) Michelle invested $1,550 at the end of every 6 months into an RRSP for 16 years. For the first 8 years she earned interest at a rate of 4.70% compounded semi-annualy and for the next 8 years she earned interest at a rate of 6.50% compounded semi-annualy. zion 2 (3) stion 3 (3) a. Calculate the accumulated value of her investment after the first 8 years. estion 4 (4) mestion 5 (3) Round to the nearest cent cuestion 6 (6) Question 7 (4) Question 8 (4) b. Calculate the accumulated value of her investment at the end of 16 years.

Answer 1

FV of ordinary Annuity = p [4-579-1] where, per pened Fy- Future Value r-rate n- no. of periods P- payment per period 8. Yre A, period= 6 monthn period= 6 months 8 Yrs A For o to 8 yrs Y= 4.7% o.077 - 00235 2 2 Accumulated at ayu 16 n = 2x8 = 16 A, = 1550 ((1+0.02:35) 13 -$29689.12 0.0235

For 8 to 16 Yoris na = ($6-8)x2 16 Nate that on this amount Ai, compound interest will apply for 8 Yos semiannually We will reprately calculate & add value of payment mader from 8 to if you to get the total amount +7) :. A, - A1(1+x)= P { 포 Where A = $29689.12 82= 6.50% = 0.065 = 0.0325 -4 p= $1550 2 2

> A2= 65689.12)(1.03250* (155) [106 syla $ 49526.5744 + $31866.6899 ($81393.26 - Accumulated at 16 yos Tatal Interent A₂-(2, th2) P = 81393.26-($6+16) (1550) $317.93.26