Question
I appreciate any help you an give me Thank you. Allison wants to be able to purchase a 20 year annuity at age 62 that
I appreciate any help you an give me
Thank you.
Allison wants to be able to purchase a 20 year annuity at age 62 that will pay her $3500 at the beginning of each month. She makes her first quarterly payment to an RRSP on her 35th birthday and continues them up to but not including her 62nd birthday. What should be the amount of each payment? Assume that her RRSP will earn 8% compounded quarterly and that the money used to purchase the annuity will earn 4.8% compounded monthly.
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
