Morgan has $500,000 accumulated in her RRSP and intends to use the amount to purchase a 20-year annuity. She is investigating the size of annuity payment she can expect to receive, depending on the rate of return earned by the undistributed funds. What nominal rate of return must the funds earn for the monthly payment to be:
a. $3000?
b. $3500?
c. $4000?

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The Answer of Morgan has $500,000 accumulated in her RRSP and intends to use the amount to purchase a 20-year annuity. She is investigating the size of annuity payment she can expect to receive, depending on the rate of return earned by the undistributed funds. What nominal rate of return must the funds earn for the monthly payment to be:
a. $3000?
b. $3500?
c. $4000?

Morgan Has $500,000 Accumulated in Her RRSP and Intends to Use