Woods Has Contributed $3600

Woods has contributed $3600.00 per year for the last ten years into a RRSP account earning 9% compounded annually. His wife Karen, on the other hand, contributed $300 at the end of every month for the same period into a RRSP account earning 9% compounded monthly. Who earns more interest at the end of 10 years and by how much?

A) Wood by $3360
B) Karen by $3360
C) Wood by $54 695
D) Karen by $58 054
E) Karen by $22 054

Correct Answer:

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