Gerta is 30 years old and advises her financial planner that she wants to retire in 35 years. The financial planner and Gerta determine that Gerta will need to receive beginning of the month payments of $3400 for 20 years after she retires. To fund this retirement money, Gerta will have to start saving immediately.
Gerta opens up an RRSP to start making deposits for retirement, the RRSP has an interest rate of 3.8% compounded semi-annually.

What beginning of the month payments does Gerta need to start making today into her RRSP so that she can receive monthly payments of $3400 for 20 years after she retires?
(Remember she plans to retire in 35 years)
(Produce a properly labelled timeline)

Answer rating: 100% (QA)

To determine the beginningofthemonth payments Gerta should make into her RRSP to receive monthly pay... View the full answer