What is the accumulated value of the annuity

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Question - Scott had a balance of $3,250 in his RRSP. In addition to this, he invested $700 at the end of every 3 months for 9 years. His RRSP earned 4.00% compounded quarterly for the first 3 years and 4.50% compounded quarterly for the rest of the period. (Question relates to: Annuities - Future and Present Value Calculations for Ordinary Simple and General Annuity)

Required -

a. What is the accumulated value of the balance of $3,250 at the end of the time period?

b. What is the accumulated value of the annuity at the end of the first 3 years?

c. What is the future value of the accumulated value from (b) at the end of the 9 years?

d. What is the accumulated value of the $700.00 annuity for the next 6 years at 4.50% compounded quarterly?

e. How much did he have in the RRSP at the end of the time period?

f. What were his total earnings?

Reference no: EM132954100

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