Here the question that i hope to get some help on...
After 10½ years of contributions of $2,000 at the end of every six (6) months to an RRSP, the accumulated amount stood at $65,727.82. What semi-annually compounded nominal rate and equivalent compounded monthly rate of return were earned by the funds in the RRSP?
Using my calculator I got this far...
4.2507 would be the periodic monthly rate, correct?
baring in mind that i know nothing about your calculator.....
I is probably the "equivalent monthly compunded rate". You need to convert it to a semi-annual nominal rate using standard methods.
- Periodic is 4.251
- semi annaully compound nominal would be 4.25 x 2 = 8.502
- equivalent compounded monthly rate is 0.6689%
Am i in the ball park?
Originally Posted by petedam
m = monthly cpd. rate:
(1 + m)^12 = 1.08502
1 + m = 1.08502^(1/12)
m = .006823.... or .6823%
Thanks...I re- did and got 0.6823...not sure what happened the first time.
Originally Posted by Wilmer
is that a spambot? i cant quite tell
Originally Posted by springfan25
the post i was referring to has been deleted. I wasn't referring to your answer or any other post that is still in the thread ;)