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:

Compressions

Actions that apply pressure to a part of the body, often used in first aid to stop bleeding or in cardiopulmonary resuscitation.

Cardiovascular System

The body's system comprising the heart and blood vessels, responsible for circulating blood and delivering oxygen and nutrients to tissues.

Pulse Oximeter

A non-invasive device used to measure the oxygen saturation level of the blood, indicating how well oxygen is being sent to parts of the body.

Oxygenation

The process by which oxygen molecules are transferred from the air to the blood, crucial for cellular metabolism and overall health.