Leena just had a baby girl! To save for her education, Leena deposits $700today in an RESP*

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Leena just had a baby girl! To save for her education, Leena deposits $700today in an RESP* that pays 6% annually. She will deposit another $700 every year on her daughter's birthday until she turns 18 (including her 18th).

a) Is this an annnuity certain or a contingent annuity?

b) Is this an annuity immediate or an annuity due?

c) How many payments will Leena make?

d) How much money will be in the RESP after her daughter's 18th birthday?(2 decimals)

*RESP = Registered Education Savings Plan, basically a tax free savings account

Posted Date: May 18, 2024 10:03 AM

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Leena just had a baby girl! To save for her education, Leena deposits $700today in an RESP*

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