Mark Contributed $270

question 142

Essay

Mark contributed $270.00 at the end of every 3 months for 5.75 years into an RRSP earning 12.6% interest compounded quarterly. Four years after the last contribution he converted the RRSP into a RRIF that is to pay him quarterly payments for 29.5 years. If the first payment is due three months after the conversion into the RRIF and interest on the RRIF is 9.5% compounded quarterly, how much will Mark receive every 3 months?

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Definitions:

Aesthetic Efficiency

The principle of designing products or services to be both aesthetically pleasing and functionally efficient.

Preneed

Planning and arrangement for services and goods before they are needed, often in the context of funeral services.

Prefunding

The arrangement and payment for services or goods in advance, often used in the context of making arrangements for one's own funeral before death.

Prearranging

The act of planning or arranging in advance, often used in the context of funeral or burial arrangements.