After Contributing $2,000 at the End of Each Quarter for 13¾

question 179

Short Answer

After contributing $2,000 at the end of each quarter for 13¾ years, Foster has accumulated $205,064 in his RRSP. What effective annual rate of return was earned by the RRSP over the entire period?

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Definitions:

Common Stock

Common stock represents units of ownership in a corporation, granting holders voting rights and a share in the company's profits, often through dividends.

Ending Balance

The amount in an account at the end of an accounting period after all debits and credits have been accounted for.

Asset (A)

Resources owned by a company that have economic value and can provide future benefits.

Liability (L)

Financial obligations, debts, or responsibilities the company owes to others, measurable in monetary terms.