document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1207348>Question 1207348</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Aisha contributed $2000 per year for the past 10 years into an RRSP account earning 3.8% compounded annually. Suppose she leaves the accumulated contributions for another five years in the RRSP at the same rate of interest. <BR>\n" );
document.write( "(a)How much will Aisha have in total in her RRSP account? <BR>\n" );
document.write( "(b)How much did Aisha contribute?<BR>\n" );
document.write( "(c)How much interest will have been earned? <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #845182 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=845182\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a> can help solve this.<BR>\n" );
document.write( "alternatively, my ti-business analyst 2 will do the same job.<BR>\n" );
document.write( "there may be slight differences due to rounding, but the answers will essentially be the same.<BR>\n" );
document.write( "i compared the two results and provided both if there was a difference.\r<BR>\n" );
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document.write( "there are also annuity formulas that will provide the same answer.\r<BR>\n" );
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document.write( "here are the results from using the calculator at arachnoid.com\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2024/052702.jpg\">\r<BR>\n" );
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document.write( "the first thing to do is to find the future value of 2000 invested at the end of each year.\r<BR>\n" );
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document.write( "inputs are:<BR>\n" );
document.write( "present value = 0<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "number of time periods = 10 years<BR>\n" );
document.write( "payment is -2000.<BR>\n" );
document.write( "interest rate per time period = 3.8% per year<BR>\n" );
document.write( "payments are made at the end of each year.\r<BR>\n" );
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document.write( "click on fv and the calculator tells you that the future value is 23790.69.\r<BR>\n" );
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document.write( "the next thing to do is to finr the future value of 23790.69 for the additional 5 years.\r<BR>\n" );
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document.write( "inputs are:inputs are:<BR>\n" );
document.write( "present value = -23790.69<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "number of time periods = 5 years<BR>\n" );
document.write( "payment is 0.<BR>\n" );
document.write( "interest rate per time period = 3.8% per year<BR>\n" );
document.write( "payments are made at the beginning or end of each year doesn't apply.\r<BR>\n" );
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document.write( "click on fv and the calculator tells you that the future value is 28667.76.\r<BR>\n" );
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document.write( "that should be your answers.\r<BR>\n" );
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document.write( "2000 invested at the end of each year for 10 years, and then having the remaining balance invested for an additional 5 years with no additional investments at the end of each year, will will be worth 28667.76 at the end of the 15 year period.\r<BR>\n" );
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document.write( "answers to your questions are:\r<BR>\n" );
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document.write( "a. How much will Aisha have in total in her RRSP account?\r<BR>\n" );
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document.write( "28,667.76.\r<BR>\n" );
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document.write( " b. How much did Aisha contribute? \r<BR>\n" );
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document.write( "she contributed 10 * 2000 = 20,000\r<BR>\n" );
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document.write( "c. How much interest will have been earned?\r<BR>\n" );
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document.write( "her interest earned was 28,667.76 minus 20,000 = 8,667.76<BR>\n" );
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