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Jacob is 25 yrs old and hopes to retire by 55. He invests \$22,000 in an RRSP that earns a rate of 9.7% per annum, compounded quarterly. What will his investment be at age 55?
A=P(1+i)^n
2200(1+.097/4)^120
=\$390067
to get the 120 I did 55-25=30 then * by 4 cause its compounded quarterly. But answer seems so high I'm questioning myself.

• math 20 please check -

You are correct!

You are looking at the power of compound interest.

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