1 a)

Your RRSP savings of $55,000 are converted to a RRIF at 5.75% compounded monthly that pays $5,300 at the beginning of every month. After how many payments will the fund be depleted?

Round to the next payment

b )Lush Gardens Co. bought a new truck for $52,000. It paid $5,200 of this amount as a down payment and financed the balance at 6.75% compounded semi-annually. If the company makes payments of $1,800 at the end of every month, how long will it take to settle the loan?

yearsmonthsExpress the answer in years and months, rounded to the next payment period