Ms. Bowers wants to be able to purchase a 20-year annuity at age 62 that will pay her $3500 at the beginning of each month. She makes her first quarterly contribution to an RRSP on her 35th birthday and continues them up to but not including her 62nd birthday. What should be the amount of each contribution? Assume that her RRSP will earn 8% compounded quarterly and that the money used to purchase the annuity fund will earn 4.8% compounded monthly.
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