Registered Education Savings Plan

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Question

Since the birth of his daughter, 17 years ago, Kimberly has deposited $150 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 5.50% compounded monthly for the first 8 years and 5.10% compounded monthly for the next 9 years.

1. What would be the accumulated value of the RESP at the end of 8 years?

2. What would be the accumulated value of the RESP at the end of 17 years?

3. What is the amount of interest earned during the 17 year period?

Reference no: EM133674241

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