Leslie received a $40,000 settlement when her employer declared her job redundant. Under special provisions of the Income Tax Act, she was eligible to place $22,000 of the amount in an RRSP. Fifteen years from now, she intends to transfer the money from the RRSP to a Registered Retirement Income Fund (RRIF). Thereafter, Leslie will make equal withdrawals at the end of each quarter for 20 years. If both the RRSP and the RRIF earn 8.5% compounded quarterly, what will be the amount of each withdrawal?

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The Answer of Leslie received a $40,000 settlement when her employer declared her job redundant. Under special provisions of the Income Tax Act, she was eligible to place $22,000 of the amount in an RRSP. Fifteen years from now, she intends to transfer the money from the RRSP to a Registered Retirement Income Fund (RRIF). Thereafter, Leslie will make equal withdrawals at the end of each quarter for 20 years. If both the RRSP and the RRIF earn 8.5% compounded quarterly, what will be the amount of each withdrawal?

Leslie Received a $40,000 Settlement When Her Employer Declared Her