Question

$ Gabriel opened an RRSP deposit account on December 1, 2008, with a deposit of $1600. He added $1600 on December 1, 2010, and $1600 on July 1, 2012. How much is in his account on June 1, 2016, if the deposit earns 5.9% p.a. compounded monthly? The amount in the account is (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answer 1

Ans:- Ques: Gabriel opened an RR 8p deposit allound on december 1, 2008.with a deposit of $ 1600 He added $1600 on decembert, 2010 and $ 1600 m July 1, 2012 How much in his allount on Juliet, 2016 il deposite earns 5.9 p. a Compounded monthly? Intial amount of Gaberial account from deember 1, 2ood to december 1, 2010 interest rated, sigof monthly (decimal value) = 0.059 Time unit year = 12 month and time duration between duumber 1, 2008 P, (say) = $1600 Now Now no 1 to december 1, 2010 lt = 2 years then nt, - 2x12 = 24 months then Use formule for compound Intersets A, = P, (1+2) mit, = 1600 (it 0.059 24 12

duumber 1, 2010 2 7 years A1 = 1799, 870096 so on deumber 1, 2010 Gaberial has amount in his account $ 1799.870096 and he add $ on december 1, 2010 so total amount in Gaberial amount on P2 (say) = A1+ 1600 1799.870096 +1600 1 P2 =$ 3399.870096 Mow time duration from december 1, 2010 to July 1, 2012 nita 2x12 +7 note 31 months Now Az rintz +33 99.870096 ( 1+0.059 2.JP/ | Ag = $3958. 164561 on July 1, 2012 Gaberial has amount in his account Az = $3959. 16456) and he add & 1600 on July 1, 2012 on his alcount so total amount in Gaberial account on July 1, 2012 P3 (day) = Ag +1600 3958-16456141600 [P3 = $5550. 16456]

Mow Az 47 Mow time duration ents) from July 1, 2012 to June 1, 2016 3 years il months nitz 3x12 +11 nt3 = 47 months P ( 1trynt = 57°58-164571 (1+0.059) (Az = $6999.124344 Herre Toitel amount in Gaberial amount on June 1, 2016 $ 6999.124344 Result: - The amount in the allount is $ 16999./24344 Note! The formelle for Compound unterest uncluding Principal amount A- pl pt mijmt) where A = The Future value of unvestment including Principal investment amount d = the annual unterest rate (decimal) ms the number of times that untereit is compounded t = the time the money is in wested - Thanking you!!