maths

Mr. and Mrs. Fox have each contributed $1825.00 per year for the last eight years into RRSP accounts earning 6.93% compounded annually. Suppose they leave their accumulated contributions for another five years in the RRSP at the same rate of interest.
a) How much will Mr. and Mrs. Fox have in total in their RRSP accounts?
b) How much did the Fox's contribute?
c) How much will be interest??

  1. 👍 0
  2. 👎 0
  3. 👁 410
  1. a) the period where they are making deposits is a future value annuity, so use the future value annuity formula to find out how much is in the account after 8 years:
    FV = R[(1+I)^n]/i
    (Remember that the regular deposit, R, is 2*1875)
    The period where their money sits and collects interest is a compound interest situation. Use the formula:
    A = P(1+i)^n
    (Use the FV value you obtained above, as P)
    b) add up how much they both deposited over the 8 years.
    c) answer to a) - answer to b)

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Alg: Please Help

    Mr. and Mrs. Sawyer bought a condonminium for $75,000. Assuming that it value will appreciate 6% a year, how much will the condo be worth iin five years when the Sawyers are ready to move? Steps please.

    asked by Anonymous on May 25, 2010
  2. english

    Choose the correct form of the possessive for the bolded word in the following sentence: "A YEARS worth of hard work has finally paid off.” year years years' *year's Thank You.

    asked by Anonymous on April 30, 2013
  3. spanish

    The years from 1810 to 1825 were difficult for who because of the territorial losses?

    asked by Anonymous on November 15, 2016
  4. statistics

    At a local high school students were randomly assigned to one of two math teachers- Mrs smith and mrs jones. After the assignment, Mrs Smith had 30 students and mrs jones had 25 students. at the end of the year each class took the

    asked by Anonymous on March 27, 2012
  5. finance

    Suppose that you are 25 years old and you have two options to save money for retirement. Plan A allows you to save $3000 per year for the next 20 years, then sit for 20 years and finally draw on it for the following 30 years. Plan

    asked by Jessie on January 15, 2013
  1. Maths

    Mrs Lim is m years old. She gave birth to her son when she was 20 years old. What will their total age be in 12 years' time?

    asked by Jae on November 12, 2012
  2. math

    In 10 years' time,Mrs smith will be 57 years old .how old was she five years ago?

    asked by elescia on February 28, 2016
  3. grammar(possessive)

    "A years worth of hard work has finally paid off." year (my choice) years years' year's Please check.

    asked by lilman on April 18, 2012
  4. maths

    Mr. and Mrs. Fox have each contributed $1825.00 per year for the last eight years into RRSP accounts earning 6.93% compounded annually. Suppose they leave their accumulated contributions for another five years in the RRSP at the

    asked by mm on December 4, 2018
  5. Urgent math

    please help The fox population in a certain region has a relative growth rate of 7% per year. It is estimated that the population in 2005 was 19,000. (a) Find a function n(t) = n0ert that models the population t years after 2005.

    asked by Lydia on August 3, 2015

You can view more similar questions or ask a new question.