Duncan Retired Recently and Plans to Utilize Other Savings for a Few

question 41

Short Answer

Duncan retired recently and plans to utilize other savings for a few years while his RRSP continues to grow on a tax-deferred basis. The RRSP is currently worth $142,470. How long will it be until the amount in the RRSP is large enough to purchase a 25-year annuity paying $1700 at the end of each month? Assume that the RRSP and the annuity will earn 8.75% compounded semi-annually.

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Definitions:

Intellectual Disability

A developmental disorder characterized by limitations in both intellectual functioning (such as learning, problem-solving, judgment) and in adaptive behavior.

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, characterized by physical growth delays and intellectual disabilities.

Protruding Tongue

A condition where the tongue extends beyond the lip border, often observed in developmental disorders or neurological conditions.

Trisomy 21

A genetic disorder caused by the presence of an extra 21st chromosome, also known as Down syndrome, leading to developmental and physical changes.