Reg is developing a financial plan that would enable him to retire 30 years from now at age 60. Upon reaching age 60, he will use some of the funds in his RRSP to purchase an eight year annuity that pays $5000 at the end of each month. Then, at age 68, he will use the remaining funds to purchase a 20 year annuity paying $6000 at each month's end. What contributions must he make to an RRSP at the beginning of each quarter for 30 years to achieve his retirement goal if the RRSP and the annuities earn 7.5% compounded monthly?

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The Answer of Reg is developing a financial plan that would enable him to retire 30 years from now at age 60. Upon reaching age 60, he will use some of the funds in his RRSP to purchase an eight year annuity that pays $5000 at the end of each month. Then, at age 68, he will use the remaining funds to purchase a 20 year annuity paying $6000 at each month's end. What contributions must he make to an RRSP at the beginning of each quarter for 30 years to achieve his retirement goal if the RRSP and the annuities earn 7.5% compounded monthly?

Reg Is Developing a Financial Plan That Would Enable Him