# What beginning-of-month withdrawals can a $400,000 RRIF (Registered Retirement Income Fund) sustain for 20 years if the

## Question:

a. 3% compounded monthly?

b. 4.5% compounded monthly?

c. 6% compounded monthly?

d. 7.5% compounded monthly? Also calculate the total earnings distributed over the life of the annuity in each case.

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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## Step by Step Answer:

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