When Brandon was born, his parents started to save $3,500 per year at the end of each year in a Registered Education Savings Plan (RESP) to pay for his future university tuition costs. The RESP account has a rate of return at 7.8% per year. His parents will make 18 deposits to this RESP account.
a) How much will be his RESP account balance when he begins his University studies?
b) How much will he be able to withdraw from this account at the end of each year during his University education (assuming that he will finish the University education in 5 years)?