Solution: Given that PMT=$250 n=4 for querterly payment t=35 years r=11.5%=0.115a)We have to use the formula ,A=PMT[nr(1+nr)nt−1]Substitute the given dataA=250[40.115(1+50.115)4(35)−1]Simplify,A=250[40.115(1+50.115)105−1]A=250[0.0287(1+0.02875)105−1]A=250[0.0287(1.02875)105−1]A=250[0.028719.61254997−1]A=250[0.028718.61254997]A=250(647.39304)A=161848.26061b)Yanmei has contributed $250 to an RRSP at the end of each 3−month period for the past 35 years.∴ principle amount invested over 35 year=[(35)(4)(250)]=$35000$35000 of the investment will be interest earned over the 35 years. and Interest earned=161848.26061−35000=126848.26061
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