How Much is in Randy's RRSP Deposit Account in October?
What is the total amount deposited by Randy in his RRSP deposit account?
Randy opened an RRSP deposit account on December 1, 2008, with a deposit of $2400. He added $2400 on March 1, 2010, and $2400 on January 2012. How much money has he deposited in total?
How much interest has Randy earned over the years?
Given that Randy has $7560 in his RRSP deposit account in October, how much interest has he earned since opening the account?
What is the total amount in Randy's RRSP deposit account in October?
Considering the total amount deposited and interest earned, what is the total amount in Randy's RRSP deposit account in October?
Answer:
To calculate the total amount in Randy's RRSP deposit account in October, we need to consider the total amount deposited and the interest earned over the years.
Randy opened an RRSP deposit account on December 1, 2008, with a deposit of $2400. He added $2400 on March 1, 2010, and $2400 on January 2012. To calculate the total amount deposited, we add up all the deposits:
Total amount deposited = $2400 + $2400 + $2400 = $7200
Next, we assume a simple interest rate of 5% per year to calculate the interest earned. The interest earned would be:
Interest earned = $7200 * 5% = $360
Therefore, the total amount in Randy's RRSP deposit account in October is the sum of the total amount deposited and the interest earned:
Total amount in the account = $7200 + $360 = $7560
Thus, Randy has $7560 in his RRSP deposit account in October.