With the help of an RESP (Registered Education Savings Plan), a parent can start

Question

With the help of an RESP (Registered Education Savings Plan), a parent can start putting aside money for a child's post-secondary education. Suppose that a young couple deposits $2,000 to start the savings plan, and each month thereafter they contribute $200. Assume that a fixed interest rate of 5.5% each year compounded monthly is applied. Each month the balance increases according to the following formula:

New balance = Old balance + (Old balance * Monthly interest rate) + Monthly contribution

What is the total amount of money saved after 22 years?

*To solve this question I have to use Matlab and a for loop.*

Explanation / Answer

CODE :

totalNumberOfYears = 22;
totalMonths=22*12;
oldBalance=2000;
interestRate=5.5;
monthlyContri=200;
newBalance=0;
for y = 1 : totalMonths
newBalance= oldBalance+(oldBalance*interestRate)+monthlyContri;
end
disp(newBalance)
fprintf('In %d years, the new balance is $%.2f ', totalNumberofYears, newBalance)

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