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To Compensate for the Effects of Inflation During Their Retirement

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To compensate for the effects of inflation during their retirement years, the Pelyks intend to purchase a combination of annuities that will provide the following pattern of month-end income: To compensate for the effects of inflation during their retirement years, the Pelyks intend to purchase a combination of annuities that will provide the following pattern of month-end income:    How much will they need in their RRSPs when they retire at the beginning of 2005 to purchase the annuities, if the annuity payments are based on a rate of return of 8% compounded semiannually?
How much will they need in their RRSPs when they retire at the beginning of 2005 to purchase the annuities, if the annuity payments are based on a rate of return of 8% compounded semiannually?

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