As of Bettys fifty-sixth birthday, she has accumulated $195,000 in her RRSP. She has ceased contributions but

Question:

As of Betty’s fifty-sixth birthday, she has accumulated $195,000 in her RRSP. She has ceased contributions but will allow the RRSP to grow at an expected 8.4% compounded monthly until she reaches age 65. Then she will use the funds in the RRSP to purchase a 20-year annuity. What will her end-of-month annuity payments be if the money used to purchase the annuity earns 7.2% compounded monthly?

Fantastic news! We've Found the answer you've been seeking!