The advantage of the RESP is that the government will contribute $1 for every $5 parents put

Question:

The advantage of the RESP is that the government will contribute $1 for every $5 parents put in, up to a maximum government grant of $500 per year per child. Assume the Wong family contributes $2000 per year over a 16-year period to an RESP earning 4.85% interest compounded semi-annually.
a. Calculate the value the plan would have at the start of the 17th year.
b. Calculate the value of annual contributions of $2000 into a non-RESP plan over a 16-year period at 4.85% interest compounded semi-annually.
c. Determine the difference in plan values of the RESP plan and those of the non-RESP plan.