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John makes regular (end of term) deposits into his RRSP (Registered Retirement Savings Plan) that will be converted into an RRIF (Registered Retirement Income Fund)
John makes regular (end of term) deposits into his RRSP (Registered Retirement Savings Plan) that will be converted into an RRIF (Registered Retirement Income Fund) 24 years from now. During retirement John would like to receive $3,400 at the end of each month for 22 years. If interest is 3.31% compounded monthly (for both the RRSP and RRIF). Answer the following questions, and round all answers to two decimal places where necessary. 1) How much money should John have in his RRIF to receive payments of $3,400 at the end of each month? PAY = C = N= 1/4 = % PV = $ PMT - $ FV = $ 2) What payment will John have to make at the end of each month into his RRSP so that there is enough money in his RRIF at the start of his retirement? P/Y = C/Y = N= 1/4 = % PV - $ PMT = $ FV = $
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