If you contribute $1000 to an RRSP at the beginning of every three months for 25 years and then use the accumulated funds to purchase an annuity paying $3000 at the beginning of each month, what will be the term of the annuity? Assume that the RRSP earns 8.5% compounded quarterly and the funds invested in the annuity earn 7.5% compounded monthly.

Question

Quizplus · Accepted Answer

The Answer of If you contribute $1000 to an RRSP at the beginning of every three months for 25 years and then use the accumulated funds to purchase an annuity paying $3000 at the beginning of each month, what will be the term of the annuity? Assume that the RRSP earns 8.5% compounded quarterly and the funds invested in the annuity earn 7.5% compounded monthly.

If You Contribute $1000 to an RRSP at the Beginning