Duncan retired recently and plans to utilize other savings for a few years while his RRSP continues to grow on a tax-deferred basis. The RRSP is currently worth $142,470. How long will it be until the amount in the RRSP is large enough to purchase a 25-year annuity paying $1700 at the end of each month? Assume that the RRSP and the annuity will earn 8.75% compounded semi-annually.

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The Answer of Duncan retired recently and plans to utilize other savings for a few years while his RRSP continues to grow on a tax-deferred basis. The RRSP is currently worth $142,470. How long will it be until the amount in the RRSP is large enough to purchase a 25-year annuity paying $1700 at the end of each month? Assume that the RRSP and the annuity will earn 8.75% compounded semi-annually.

Duncan Retired Recently and Plans to Utilize Other Savings for a Few