A company deposited $8,500 into an investment fund at the beginning of every quarter for 4 years. It then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.50% compounded monthly.a. What was the accumulated value of the fund at the end of 4 years ?$0.00b. What was the accumulated value of the fund at the end of 7 years ?$0.00c. What was the amount of interest earned over the 7-year period? Since the birth of his granddaughter, 18 years ago, Nicole has deposited $150 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 4.50% compounded monthly for the first 9 years and 4.75% compounded monthly for the next 9 years. a. What was the accumulated value of the RESP at the end of 9 years? b. What was the accumulated value of the RESP at the end of 18 years? c. What was the amount of interest earned over the 18-year period?
A company deposited $8,500 into an investment fund at the beginning of every quarter for 4 years. It then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.50% compounded monthly.a. What was the accumulated value of the fund at the end of 4 years ?$0.00b. What was the accumulated value of the fund at the end of 7 years ?$0.00c. What was the amount of interest earned over the 7-year period? Since the birth of his granddaughter, 18 years ago, Nicole has deposited $150 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 4.50% compounded monthly for the first 9 years and 4.75% compounded monthly for the next 9 years. a. What was the accumulated value of the RESP at the end of 9 years? b. What was the accumulated value of the RESP at the end of 18 years? c. What was the amount of interest earned over the 18-year period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A company deposited $8,500 into an investment fund at the beginning of every quarter for 4 years. It then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.50% compounded monthly.
a. What was the accumulated value of the fund at the end of 4 years ?
$0.00
b. What was the accumulated value of the fund at the end of 7 years ?
$0.00
c. What was the amount of interest earned over the 7-year period?
Since the birth of his granddaughter, 18 years ago, Nicole has deposited $150 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 4.50% compounded monthly for the first 9 years and 4.75% compounded monthly for the next 9 years.
a. What was the accumulated value of the RESP at the end of 9 years?
b. What was the accumulated value of the RESP at the end of 18 years?
c. What was the amount of interest earned over the 18-year period?
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