Mr. Smith contributed $50 on the first of each month to an RESP he set up for their grandson Bob. By the time Bob entered College, 14 years and 5 months of contributions had accumulated. The Mr. Smith's contributions stopped, and Bob started $500 beginning-of-month withdrawals. How long will these payments last if the RESP has earned and continues to earn 8.25% interest compounded monthly? I keep getting $16,634.93 value after 14 years and 5 months and that he can withdrawl $500 for 37.6 months before the money runs out. Please help with a) Is 37.6 correct answer and what is the final payment as the .6 will deffinately be less than $500. I have tried 6 ways to Sunday and keep getting the same answers. Maybe it is right answer and I am beating myself up needlessly. But I still canoot find the .6 amount. Thank you. |