maths

Sigrid contributed $200 every month for nine years into an RRSP earning 4.3% compounded annually. She then converted the RRSP into an annuity that pays her monthly for 20 years. If the first payment is due one month after the conversion, and interest on the annuity is 5.4% compounded semi-annually, how much will Sigrid receive at the end of every month?

  1. 0
  2. 0
  3. 30
asked by mm
  1. Any idea how to get started on this? Where are you getting stuck?

    1. 0
    2. 0
    posted by Leo
  2. the future value of the RRSP is
    (200*12)((1+.043)^9-1)/(1.043-1) = 25713.07
    Note that since the interest is only compounded annually, you just work with a single yearly contribution.
    If it were compounded monthly, it'd be 200((1+.043/12)^(12*9)-1)/(1.043-1)

    Now just drag out your formula for annuity amortization...

    1. 0
    2. 0
    posted by Steve

Respond to this Question

First Name

Your Response

Similar Questions

  1. annuaties

    Sally contributed $500 every six months for fourteen years into an RRSP earning interest at 7.5% compounded semi-annually. Seven years after the last contribution Sally converted the RRSP into an RRIF which is to pay her equal

    asked by nikki on August 2, 2011
  2. math

    Jeanette wishes to retire in 30 years at age 55 with retirement savings that have the purchasing power of $300,000 in today’s dollars. 1. If the rate of inflation for the next 30 years is 2% per year, how much must she

    asked by nikki on May 3, 2014
  3. Math

    A boat costs $92,000 and depreciates in value by 15% per year. How much will the boat be worth after 10 years? 18,112.45 78,200 18,941.98 69,000 18,112.45 A $6000 principal earns 8% interest compounded semi annually after 35

    asked by Anonymous on February 6, 2014
  4. math,help

    what formula do i use for the following problem: which of the following investments is larger after 19years? a) $7500 is deposited annually and earns 4.5% interest compounded annually. b)$600 is deposited monthly and earns 4.5%

    asked by student on June 30, 2007
  5. MATH 12

    Kalpna opened this portfolio 4 years ago. - A $8500 fund that earns 5.45%, compounded annually - Monthly deposits of $200 into an account earning 3%, compounded monthly a) What will be the portfolio's value in 30 years when Kalpna

    asked by Anonymous on February 20, 2014
  6. Mathematics

    In the problems 1 to 3, find the present value of the given (ordinary) annuity. 1. $3500000 every 6 months for 5 years at the rate of 16% compounded semi-annually. 2. $7000000 per month for 10 months at the rate of18% compounded

    asked by Gibbons on June 22, 2010
  7. Financial math

    Farah has $600,000 in her RRSP and wishes to retire. She is thinking of using the funds to purchase an annuity that earns 5% compounded annually and pays her $3,500 at the end of each month. If she buys the annuity, for how long

    asked by Giuseppe on March 15, 2018
  8. magh

    suppose you put money into teo different bank accounts. In account #1 you deposit $500 and you will be earning 6% interest compounded quarterly. in account #2 you deposit $600 and you will be earning 5% interest compounded

    asked by Sarah on March 21, 2016
  9. Finances and Math

    Can someone please help me solve these problems or help me find an easy formula?..No matter how many times I read or try calculating I can't get it please help me..I would really appreciate it thank you.. Calculate the future

    asked by Anna on February 18, 2010
  10. high school

    Explain in your own words the difference between an account that is earning simple interest for 5 years and another account that is earning interest that is compounded annually for 5 years

    asked by kenneth on August 26, 2010
  11. Math

    $2,000 principal earning 3%, compounded annually, after 3 years.

    asked by Dean on October 21, 2016

More Similar Questions