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?

Both John and Jane have 10 000 which they will contribute to their new RRSP on their 31st birthday. Supposing that their RRSPs earn 12% compounded monthly what is Johns monthly contribution if he plans to live until 91? Similarly, what is Janes monthly contribution if she plans to live until 101?