Answer to Question #322489 in Financial Math for ANMOL

Question #322489

Heather deposited $100 at the end of every month into an RRSP for 5 years. The interest rate earned was 5% compounded daily. What was the accumulated value of the RRSP at the end of the 5 years? Round to the nearest cent.


1
Expert's answer
2022-04-04T16:51:47-0400

d=$100,r=5%,k=365d=\$100, r=5\%, k=365

PN=d((1+r/k)Nk1)r/k=100((1+5/365×1/100)365×51)5/100×1/365=$207322.05PN=\frac{d((1+r/k)^{Nk}-1)}{r/k} =\frac{100((1+5/365 \times 1/100)^{365\times 5} -1)}{5/100\times 1/365 } =\$207322.05

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment