Mr. Parmar wants to retire in 20 years and purchase a 25-year annuity that will make equal

Question:

Mr. Parmar wants to retire in 20 years and purchase a 25-year that will make equal payments at the end of every quarter. The first payment should have the purchasing power of $6000 in today’s dollars. If he already has $54,000 in his RRSP, what contributions must he make at the end of every half-year for the next 20 years to achieve his retirement goal? Assume that the rate of inflation for the next 20 years will be 2.5%, the RRSP will earn 8% compounded semiannually, and the rate of return on the fund from which the is paid will be 5.5% compounded quarterly
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,...