5. You are 40 years old and plan to retire when you turn 60. You have $150,838.92 in your RRSP and you will deposit $750 per month for 20 years starting today. When you retire at

age 60, you will receive a $40,000 retirement bonus from your employer and will immediately deposit it to your RRSP. You will then use the accumulated fund to purchase a 15-year annuity with the first withdrawal one month after your 60th birthday. Assume that the RRSP and the funds invested in the annuity earn 5% compounded monthly. (a) Find the size of the monthly withdrawals. B/E P/Y C/Y N I/Y PV PMT FV (b) In total, how much interest will you earn over the entire 35 years?

asked by guest
on Nov 17, 2024 at 10:28 pm



Mathbot Says...

I wasn't able to parse your question, but the HE.NET team is hard at work making me smarter.


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