Postby Guest » Fri May 10, 2019 7:08 pm


You and your spouse have just welcomed your first child. you realize you need to start saving for his education . you decide that you will begin investing 100/month into as RESP until his 18th birthday. use your calculators tvm solver answer

A) Assuming you can earn an average 7% on your investment (compounded monthly) how will the RESP be worth on the 18th birthday?

Future Balance

b) With an RESP investment the government contribute 20% of what you invest directly into your RESP fund. if this 20% is added to your monthly investment how much is really invested every month?

c) Use this new monthly amount to determine the value of the RESP on your son's 18th birthday how much more was earned with the governments 20% contribution?.

d) You decide to start a second resp when your daughter is born and again invest 100/month up to her 18th birthday it is expected that you will be able to earn an average of 7,4% compounded monthly on this investment.calculate the total amount of this RESP using just you monthly investment and compare this to the amount it would be if you consider the 20% government contribution.

please help

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