If Gayle contributes $1,100 to her RRSP at the end of every quarter for the next...

If Gayle contributes $1,100 to her RRSP at the end of every quarter for the next 12 years and then contributes $1,100 at each month’s end for the subsequent 13 years, how much will she have in her RRSP at the end of the 25 years? Assume that the RRSP earns 8.6% compounded semiannually. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Gayle will have

$

Expert Solution

Annual interest rate of 8.6% compounded semi annually is equivalent to:

Quarterly rate of 2.127371% and

Monthly rate of 0.704154%

Calculation as follows:

Amount available at the end of 25 years= $ 580,454.47

Calculations as follows:

jeff jeffy answered 2 years ago

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