Quarterly Contributions of $700 Are Made to an RRSP That

question 135

Multiple Choice

Quarterly contributions of $700 are made to an RRSP that earns 6% compounded monthly. How much will be in the plan immediately after the twentieth deposit?

• A) $14,685.38
• B) $16,198.55
• C) $12,190.19
• D) $16,442.74
• E) $12,009.15

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Median

A measure of central location provided by the value in the middle when the data are arranged in ascending order.

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely.

Probability Density Function

An equation that indicates the probability of a random variable occurring at a certain value.