# Beth and Nelson want to accumulate a combined total of $600,000 in their RRSPs by the time

## Question:

a. What should be their combined semiannual RRSP contributions?

b. Whatmonthlyamountcantheyexpecttoreceiveiftheyusethe$600,000intheir RRSPs 30 years from now to purchase a 25-year ordinary annuity? Assume that the funds used to purchase the annuity will earn 7.2% 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,...

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