Peter invested $1,800 at the beginning of every 6 months in an RRSP for 11 years. For the first 8 years it earned interest at a rate of 3.20% compounded semi-annually and for the next 3 years it earned interest at a rate of 5.60% compounded semi-annually.
a. Calculate the accumulated value of his investment after the first 8 years.
Round to the nearest cent

b. Calculate the accumulated value of his investment at the end of 11 years.
Round to the nearest cent

C.)Calculate the amount of interest earned from the investment.

Round to the nearest cent
Use python

Here are the results:

a. The accumulated value of Peter's investment after the first 8 years is $33,048.45.

b. The accumulated value of his investment at the end of 11 years is $50,913.25.

c. The amount of interest earned from the investment is $11,313.25.

Do you want details or have any questions?

Here are 5 numbered questions you might want to ask:
1. Can you explain the steps taken to calculate the accumulated value for the first 8 years?
2. How does the change in interest rate affect the accumulated value over the next 3 years?
3. What is the formula for calculating the future value of an annuity?
4. Can we break down the interest earned into parts from the first 8 years and the next 3 years?
5. How would the calculations change if the interest were compounded annually instead of semi-annually?

Tip: When dealing with multi-period investments, keep track of different interest rates and compounding frequencies to ensure accurate calculations.

Learn how to calculate compound interest and future value of annuity for an RRSP investment over 11 years. Detailed calculations include interest rates compounded semi-annually and changes in rates over time.

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