1.	Mr. Kumar has contributed $1825.00 per year for the last eight years into RRSP accounts earning 6.4% compounded semi-annually.
a)	How much will kumar have in total in their RRSP accounts?

To determine how much Mr. Kumar will have in total in his RRSP accounts after eight years, we can use the future value of an annuity formula, as the contributions are made annually, and interest is compounded semi-annually. The formula is:

\[
FV = P \times \frac{(1 + r)^n - 1}{r}
\]

where:
- $ FV $ is the future value of the annuity.
- $ P $ is the annual contribution.
- $ r $ is the interest rate per period.
- $ n $ is the total number of compounding periods.

Given:
- Annual contribution, $ P = 1825.00 $
- Annual interest rate, $ i = 6.4\% = 0.064 $
- Compounded semi-annually, so there are 2 compounding periods per year.
- Number of years, $ t = 8 $

### Step 1: Calculate the semi-annual interest rate.
\[
r = \frac{0.064}{2} = 0.032
\]

### Step 2: Calculate the total number of compounding periods.
\[
n = 8 \times 2 = 16
\]

### Step 3: Plug the values into the future value of an annuity formula.
\[
FV = 1825 \times \frac{(1 + 0.032)^{16} - 1}{0.032}
\]

Now let's calculate the future value.

Mr. Kumar will have approximately **$37,372.24** in total in his RRSP accounts after eight years.

Would you like more details on how this was calculated or have any questions?

### Related Questions:
1. How would the total amount change if Mr. Kumar contributed for 10 years instead of 8 years?
2. What would be the future value if the interest rate was 7% compounded semi-annually?
3. How much interest has Mr. Kumar earned over the 8 years?
4. What is the effect of contributing monthly instead of annually?
5. How would the future value change if the interest was compounded quarterly instead of semi-annually?
6. What happens to the future value if Mr. Kumar decides to increase his annual contribution by 5% each year?
7. How much would Mr. Kumar have if he made a one-time lump sum contribution of $1825 at the beginning and let it grow for 8 years?
8. How does the future value change if the interest rate drops to 5%?

### Tip:
When making regular contributions to an investment account, the frequency of contributions and compounding can significantly impact the final amount.

Learn how to calculate the future value of RRSP contributions made annually with compound interest at a rate of 6.4% compounded semi-annually. Mr. Kumar's contributions of $1825 per year over 8 years will accumulate to approximately $37,372.24. Detailed step-by-step solution included.

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