math 20 please check
posted by Sandi .
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?
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.
You are correct!
I got $390 067.17, the same as your answer.
You are looking at the power of compound interest.