Question

Your RRSP savings of $35,000 are converted to a RRIF at 4.85% compounded monthly that pays $5,328 at the beginning of every month. After how many payments will the fund be depleted?

Answer #1

Information provided:

Present value= $35,000

Monthly payment= $5,328

Monthly interest rate= 4.85%/12= 0.4042

Enter the below in a financial calculator to compute the number of payments after which the fund will be depleted:

PV= -35,000

PMT= 5,328

I/Y= 0.4032

Press the CPT key and N to compute the number of payments.

The value obtained is 6.64.

The number of payments taken after which the account is depleted
is **6.64.**

In case of any query, kindly comment on the solution.

Mr. Lavergne accumulated $220 000.00 in an RRSP. He converted
the RRSP into an RRIF and started to withdraw $5500.00 at the end
of every three months from the fund. If interest is 8.68%
compounded monthly, how many withdrawals can Mr. Lavergne make?
(Calculate to one decimal place, eg 12.3)

the balance is Marc's RRSPs was $148000 when he converted the
RRSPs to an RRIF the RRIF pays $5000 at the end of each quater if
the interest on the RRIF is 4.3% compounded monthly for how long
will Marc receive quartley payments?

Deon makes monthly contributions of $250.00 at the end of every
month into an RRSP. Calculate, to the nearest month, how long it
will take to grow to $100 000.00 if interest is 8% compounded
annually.
ANSWER: __________________________

Recently, More money 4U offered an annuity that pays 4.8%
compounded monthly. If 1,873 is deposited into this annuity every
month, how much is in the account after 12 years? How much of this
is interest?
(round to the nearest dollar)

Paige invested $11,000 in a fund earning 6% compounded monthly.
She withdraws $700 from the fund at the end of every quarter with
the first withdrawal being made 5 years from now. How long will it
take for the fund to be depleted?

Shane invested $14,000 into a fund earning 6.50% compounded
monthly. He plans to withdraw $850 from the fund at the end of
every quarter. If the first annuity withdrawal is to be made 4
years from now, how long will it take for the fund to be
depleted?

Sophie leased equipment worth $35,000 for 9 years. If the lease
rate is 6.75% compounded monthly, calculate the size of the lease
payment that is required to be made at the beginning of each
month.

You want to begin building your emergency savings fund of 6
months of monthly expenses. Based on your budget you have
determined that you can save $250 per month toward this fund. You
choose a savings account at a local Credit Union that is paying
2.0% interest, compounded monthly. At this amount and rate of
interest, how much will you have in the savings account in 12
months? In 24 months?

You're prepared to make monthly payments of $320, beginning at
the end of this month, into an account that pays 8 percent interest
compounded monthly. How many payments will you have made when your
account balance reaches $20,263?

Mega-Mergers-R-Us State Bank pays 4% annual interest, compounded
monthly, on savings accounts. If you deposit $10,000 into an
account and make no further deposits or withdrawals, how much
interest will you have earned in total after 5 years?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 6 minutes ago

asked 14 minutes ago

asked 26 minutes ago

asked 46 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago