Question

7. How much interest is included in the future value of an ordinary simple annuity of $1,350 paid every six months at 6% compounded semi-annually if the term of the annuity is 2 years? The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 8. Glenn has made contributions of $250 at the end of every three months into an RRSP for ten years. Interest for the first four years was 4% compounded quarterly. Since then the interest rate has been 5% compounded quarterly. How much will Glenn have in his RRSP three years after the last contribution? Glenn will have $ in his RRSP. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answer 1

Q7:-

Solution:-

Given that

The future value of an ordinary simple annuity of $1350 paid every six months at 6% compunded semi-annually if the term of the annuity is 2 years.

Find interest

Formula

Here,

P = total amount = 1350 $

r = rate of interest = 6%

n = 2 x 2 = 4

But we want the interest

I = 505.7316

As HOMEWORKLIB RULES rule I have done 1st question

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