Mr Smith Has Made Payments of $1,250 at the End

Multiple Choice

Mr. Smith has made payments of $1,250 at the end of each quarter into an RRSP for the last four years. Interest at 12% compounded quarterly was earned. He decides to leave the accumulated money in the RRSP for another two years and not make any further payments to his RRSP. How much money will he have in his RRSP two years from now if the interest rate remains the same?

A) $2,540.99
B) $40,492.10
C) $31,917.67
D) $9,531.96
E) $43,033.09