| Glossary of
Financial Terms | | |
 The
Money Management Newsletter: Managing
Money
Principal and interest compounding table
Money Management Newsletter - July 1994
Most RRSPs
compound,
but the combined
Principal and Interest
of any RRSP at any Institution may compound beyond the CDIC
limit of $100,000.00 if you are not careful. The table below shows the
maximum Dollar amount to deposit in a compound interest investment at
various terms and rates to ensure your maturity value does not exceed
the CDIC coverage.
| Term Interest compounding annually |
|---|
Yrs | 9.00% | 8.50% | 8.00% | 7.50% | 7.00% | 1 | 55,046 | 55,300 | 55,556 | 55,814 | 56,075 | 2 | 50,501 | 50,956 | 51,440 | 51,920 | 52,406 | 3 | 46,331 | 46,974 | 47,630 | 48,298 | 48,978 | 4 | 42,506 | 43,294 | 44,102 | 44,928 | 45,774 | 5 | 38,996 | 39,903 | 40,835 | 41,794 | 42,779 | Interest semi-annually compounding |
|---|
1 | 54,944 | 55,208 | 55,473 | 55,741 | 56,011 | 2 | 50,314 | 50,798 | 51,288 | 51,784 | 52,287 | 3 | 46,074 | 46,741 | 47,419 | 48,109 | 48,810 | 4 | 42,191 | 43,007 | 44,841 | 44,694 | 45,565 | 5 | 38,636 | 39,572 | 40,534 | 41,521 | 42,535 |
On the other hand if your GICs are in excess of the
amounts shown below the same considerations apply.
| 9.00% | 8.50% | 8.00% | 7.50% | 7.00% | | Interest paid annually |
|---|
| 54,046 | 54,300 | 55,556 | 55,814 | 56,975 | | Interest paid monthly |
|---|
| 59,553 | 59,578 | 59,603 | 59,627 | 59,652 |
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