Question
Can I please get help with what formulas I need to calculate the below problem? I do not need it solved, just need help determining
Can I please get help with what formulas I need to calculate the below problem? I do not need it solved, just need help determining what formulas I need to use to find out how much they need to have saved to have payments of $10,000/monthly until age 81, 91 and 101.
John and Jane will contribute to an RRSP until they are each 71. When they turn 71, CRA rules require them to switch their RRSPs to an annuity and begin receiving payments. John and Jane will receive their first payments on their (respective) 71st birthdays. Each wish to receive a payment of $10 000 per month until they die. If the annuity pays 5% interest compounded monthly, how much must they have saved in their RRSP if they live until their 81, 91 or 101 birthday?
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