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Jim Just Turned Age 65

Question 29

Multiple Choice

Jim just turned age 65.He takes his RRSP savings of $300,000 and buys a 20-year annuity that pays him $R every month.If the interest rate is j12 = 7.2% and the first payment is at age 65,what is R?


A) $2376.22
B) $2366.48
C) $2362.05
D) $2347.96

Correct Answer:

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