Ms. Bowers wants to be able to purchase a 20-year annuity at age 62 that will pay

Question:

Ms. Bowers wants to be able to purchase a 20-year at age 62 that will pay her $3500 at the beginning of each month. She makes her first quarterly contribution to an RRSP on her thirty-fifth birthday and continues them up to but not including her sixty-second birthday. What should be the amount of each contribution? Assume that her RRSP will earn 8% compounded quarterly and that the money used to purchase the will earn 4.8% 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,...