A newly married couple, Mike and Jane, will each contribute to their own registered retirement savings plans until they each reach their 71^st birthdays. At that point, theyll have to transfer their RRSPs to annuities, and theyll start receiving monthly payments (first payment will be received on 71^st birthday).

1. They each want their monthly payouts to be $10,000.00 until their death. The annuity they transfer into will pay five percent interest compounded monthly. How much money must they have saved in their RRSPs (to allow for the $10,000 monthly payout) if they live until their 81^st, 91^st, or 101^st birthday?

Scenario 2. Mike and Jane have each saved $10,000.00 that they are going to contribute to their own RRSPs on their 31^st birthdays. Assume that their RRSPs earn twelve percent compounded monthly. What is Mikes monthly contribution if he plans to live until 91? Along the same lines, what must Janes monthly contribution be if she plans to live until 101?