Question: Elyse borrows $8000 at 12% per year compounded monthly. She will repay the loan by making monthly payments of $177.96 for the next 5 years.

Elyse borrows $8000 at 12% per year compounded monthly. She will repay the loan by making monthly payments of $177.96 for the next 5 years.

a) Create a payment schedule for Elyses loan.

b) How much does Elyse have left to repay after 3 years?

What do you think are the two main benefits of using an RESP?

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