Bernice is about to retire with $139,000 in her RRSP. She will make no further contributions to

Question:

Bernice is about to retire with $139,000 in her RRSP. She will make no further contributions to the plan, but will allow it to accumulate earnings for another six years. Then she will purchase an providing payments of $5000 at the end of each quarter. Assume that the RRSP will earn 8.5% compounded annually and the funds invested in the will earn 7.5% compounded monthly. How long after the purchase of the will its payments continue?
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,...