Mrs Corriveau Has Just Retired at Age 58 with $299,317

question 153

Short Answer

Mrs. Corriveau has just retired at age 58 with $299,317 in her RRSP. She plans to live off other savings for a few years and allow her RRSP to continue to grow on a tax-deferred basis until there is a sufficient amount to purchase a 25-year annuity paying $2,000 at the end of each month. If her RRSP and the annuity each earn 3.75% compounded monthly, how much longer must she let her RRSP grow (before she buys the annuity)?

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Definitions:

Kruskal-Wallis Test

An approach that is not based on parameter-specific criteria to determine if samples are from the same distribution.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true; commonly denoted by alpha.

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Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples, to assess whether their population mean ranks differ.