5) Mrs. Chan is saving for her retirement by depositing $500 at the end of every quarterly (3 months) into her RRSP. She expects to retire in 17 years from today and immediately start withdrawing monthly amounts that are to last her 18 years. If interest rates are forecast to be 5.65% compounded annually, what are the size of the withdrawals she can make during her retirement? (4 marks)

6/ A loan of $120,000 is repaid by payments of $3,000 at the end of every month. Interest is 12% compounded monthly.

(a) How many payments are required to repay the debt? (2 marks)

(b) What is the size of the final payment? (2 marks)