To calculate the amount accumulated in Joely's RRSP account, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount accumulated
P = the initial contribution per week ($30)
r = interest rate per year (5.17% or 0.0517)
n = number of times the interest is compounded per year (12 for monthly compounding)
t = number of years (4)
Substituting the values into the formula, we have:
A = 30(1 + 0.0517/12)^(12*4)
Simplifying the equation within the parentheses:
A = 30(1.0043083)^(48)
Calculating the value within the parentheses:
A = 30(1.231193238)
Multiplying the result by the initial contribution per week:
A = $36.93579714
Therefore, Joely has accumulated approximately $36.94 in her RRSP account over the past four years.
To calculate the amount accumulated in Clark's younger brother's savings account, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount accumulated
P = the initial contribution per month ($18)
r = interest rate per year (4% or 0.04)
n = number of times the interest is compounded per year (4 for quarterly compounding)
t = number of years (2)
Substituting the values into the formula, we have:
A = 18(1 + 0.04/4)^(4*2)
Simplifying the equation within the parentheses:
A = 18(1.01)^(8)
Calculating the value within the parentheses:
A = 18(1.08367498)
Multiplying the result by the initial contribution per month:
A = $19.50514964
Therefore, Clark's younger brother will have accumulated approximately $19.51 in his savings account over the past two years.