If $400,000 Accumulated in an RRSP Is Used to Purchase

question 186

Short Answer

If $400,000 accumulated in an RRSP is used to purchase an annuity earning 3.9% compounded monthly and paying $3,500 at the end of each month, what will be the term of the annuity?

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Definitions:

Economic Activities

Economic activities encompass all actions that involve the production, distribution, and consumption of goods and services within an economy.

Ethical Conduct

The practice of behaving in a manner that is considered morally right, fair, and appropriate in a given context, especially in professional settings.

Manufacturing

The process of producing goods from raw materials through various processes, machinery, and operations, typically in a factory setting.

Retail Companies

Businesses that sell goods directly to consumers, typically operating from physical locations or through online platforms.