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Lada Lada
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6 years ago
Mrs. Martin contributes $1830.00 at the beginning of every three months to an RRSP. Interest on the account is 7.44% compounded quarterly.
a) What will the balance in the account be after 6 years?
b) How much of the balance will be interest?
c) If Mrs. Martin converts the balance after 6 years into an RRIF paying 5.41% compounded quarterly and makes equal quarterly withdrawals for 11 years starting three months after the conversion into the RRIF, what is the size of the quarterly withdrawal?
d) What is the combined interest earned by the RRSP and the RRIF?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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Replies
wrote...
6 years ago
a) FVn (due) = 1830 (1.0186)
   = 1830.00(29.9076016)(1.0186) = $55 748.91
b) 55748.91 - 24(1830.00) = 55748.91 - 43920.00 = $11 828.91
c) 55748.91 = PMT 
   55748.91 = PMT(32.9973043)
   $1689.50 = PMT
d) Total interest = 44(1689.50) - 24(1830.00) = 74338.00 - 43920.00 = $30 418.00
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