1. Nikola is currently 47 years old and planning to retire at age 60. She has already saved $220,000 in her RRSP. If she continues to contribute $200 at the beginning of every month, how much money will be in her RRSP at retirement if it can earn 8.1% compounded monthly? No deposit is made the day she turns 60. 

2. To save approximately $30,000 for a down payment on a home four years from today, what amount needs to be invested at the end of every month at 4.5% compounded monthly? 

3. An investment of $100,000 today will make advance quarterly payments of $4,000. If the annuity can earn 7.3% compounded semi-annually, how long will it take for the annuity to be depleted? 

4. What is the present value of a deferred annuity with a deferral period of 17 years at 6.7% compounded semi-annually followed by a 10-year annuity due paying $1,250 every month at 4.78% compounded semi- annually? . 

5. How much money is required today to fund a perpetuity earning 5.65% annually that needs to pay out $17,000 at the end of each year?

Answer rating: 100% (QA)

1 Calculating the amount in Nikolas RRSP at retirement Nikola is currently 47 years old and will retire at 60 so she has 13 years to save She is contr... View the full answer