Woods Has Contributed $3600

question 91

Multiple Choice

Woods has contributed $3600.00 per year for the last ten years into a RRSP account earning 9% compounded semi-annually. His wife Karen, on the other hand, contributed $300 at the end of every month for the same period into a RRSP account earning 9% compounded quarterly. Who has bigger saving at the end of 10 years and by how much?

• A) Wood by $3360
• B) Karen by $3360
• C) Wood by $2580
• D) Karen by $2580
• E) Karen by $2262

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Definitions:

Treasury Stock

Treasury stock includes shares that have been originally issued and then bought back by the issuing corporation, thereby decreasing the total number of outstanding shares available on the public market.

Cumulative

Describes an amount that has accumulated over time, often referring to the total up to a particular point.

Capital Stock

The total amount of a company's shares authorized and issued to shareholders, representing the primary source of equity financing.

Common Stock

Equity ownership in a corporation, representing a claim on a portion of the profits and assets, with voting rights in corporate decisions.