If $400,000 accumulated in an RRSP is used to purchase an annuity earning 7 2 compounded monthly and paying $4500 at the end of each month, what will be the term of the annuity ...

The purchase price of the annuity equals the present value of ...

If $400,000 accumulated in an RRSP is used to purchase an annuity earning 7.2% compounded monthly and

Question:

If $400,000 accumulated in an RRSP is used to purchase an earning 7.2% compounded monthly and paying $4500 at the end of each month, what will be the term of the Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...