As of Brices fifty fourth birthday, he has accumulated $154,000 in his Registered Retirement Savings Plan (RRSP) What size of end of month payments in a 20 year annuity will these funds purchase at age 65 if he makes no further contributions Assume that his RRSP and the investment in the annuity wi...

At a focal date on Brices 65th birthday FV of 154000 PV of ordinary simple annuity payments Fo ...

As of Brices fifty-fourth birthday, he has accumulated $154,000 in his Registered Retirement Savings Plan (RRSP). What

Question:

As of Brice’s fifty-fourth birthday, he has accumulated $154,000 in his Registered Retirement Savings Plan (RRSP). What size of end-of-month payments in a 20-year will these funds purchase at age 65 if he makes no further contributions? Assume that his RRSP and the investment in the will earn 8.25% compounded monthly.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...