SOLUTION: 3. question: Jane invested $1500 into an RRSP that earned interest at 5% compounded semi-annually for eight years? a)Find the balance of the account at the end of the period. b)H

Question 1149858: 3. question: Jane invested $1500 into an RRSP that earned interest at 5% compounded semi-annually for eight years?
a)Find the balance of the account at the end of the period.
b)How much interest is earned?
c)What is the effective rate of interest?
Answer by ikleyn(52818) (Show Source): You can put this solution on YOUR website!
.


(a)  Future value after 8 years =  = 2226.76 dollars.    ANSWER


(b)  Interest earned = 2226.76 - 1500 = 726.76 dollars.



(c)  I din't answer this question, since the post didn't determine what "the effective rate of interest" is.

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- Compound interest percentage problems
in this site.

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