Annuities - PV and FV, finding n and i.

11. At 50 Harry has $800,000 in his RRSP. He wants it to grow until he's 65 and then purchase a 15 year annuity that will pay him month end payment s. What size payment will he get if the RRSP earns 7% compounded monthly and the annuity earns 6% compounded monthly?

12. Charlie currently has $80,000 in his RRSP. He contributes $500/mth for 15 years and then converts his RRSP into a 20 year annuity with monthly payments. If the RRSP earns 6% compounded monthly and the annuity earns 5% compounded semi-annually, what is the size of payment he can receive?

13. What is the best option? To buy equipment for $30,000 today or make monthly payments starting today of $575 for 4 years with a residual (buy back or amount to own the equipment) of $2400. Interest is 6% compounded monthly.

Deferred Annuities:

14. How much money do you need to deposit today so that you can withdraw 12 monthly payments of $400 starting in six months? You can earn 4.8% compounded monthly.

15. How much money do you need to deposit today so that you can withdraw 18 monthly payments of $350 starting in four months? You can earn 9% compounded monthly on your account?

Perpetuities:

16. An endowment fund of $1,500,000 is to pay scholarship grants in perpetuity. The grants are to be paid out semi-annually with the first one to be paid out immediately. If the fund earns interest at 5.5% compounded semi-annually what will be the size of the semi-annual grants?

17. A wealthy person has donated $1,000,000 to the City of Hamilton to establish a perpetuity that will be used to support the operating costs of a local museum scheduled to open in three years' time. If the funds earn 4.8% compounded monthly, what monthly payments, the first occurring three years from now, can the museum expect?