Asked by Sandi

Jacob is 25 yrs old and hopes to retire by 55. He invests $22,000 in an RRSP that earns a rate of 9.7% per annum, compounded quarterly. What will his investment be at age 55?
A=P(1+i)^n
2200(1+.097/4)^120
=$390067
to get the 120 I did 55-25=30 then * by 4 cause its compounded quarterly. But answer seems so high I'm questioning myself.

Answers

Answered by Reiny
You are correct!
I got $390 067.17, the same as your answer.

You are looking at the power of compound interest.
There are no AI answers yet. The ability to request AI answers is coming soon!

Related Questions