Edelyn has $25,000 in her RRSP. She plans to deposit an additional $200 per month at 4.25% compounded quarterly for the next 30 years. At the end of 30 years, Edelyn wants to use the accumulated funds to purchase an annuity that will pay her equal monthly payments paid at the beginning of each month for 20 years. The fund from which the annuity is paid is expected to earn 4.5% compounded semiannually. What monthly payments will she receive?

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The Answer of Edelyn has $25,000 in her RRSP. She plans to deposit an additional $200 per month at 4.25% compounded quarterly for the next 30 years. At the end of 30 years, Edelyn wants to use the accumulated funds to purchase an annuity that will pay her equal monthly payments paid at the beginning of each month for 20 years. The fund from which the annuity is paid is expected to earn 4.5% compounded semiannually. What monthly payments will she receive?

Edelyn Has $25,000 in Her RRSP