Sebastin Has Made Contributions of $2,000 to His RRSP at the End

question 125

Short Answer

Sebastin has made contributions of $2,000 to his RRSP at the end of every six months for the past eight years. The plan has earned 5.5% compounded semi-annually. He has just moved the funds to another plan, paying 4% compounded quarterly. He will now contribute $1,500 at the end of every three months. What total amount will he have in the plan seven years from now?

---

Definitions:

Interpersonal Trust

The belief in the reliability, truth, ability, or strength of others within personal or professional relationships.

Minimal Goal Level

The lowest standard or objective that an individual aims to achieve within a specific timeframe or context.

Social Learning Theory

A theory of learning and social behavior which suggests that new behaviors can be acquired by observing and imitating others.

Expectancy

The belief or anticipation that a specific event or outcome will occur, often used in the context of motivation and behavior.