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Posted on Jul 09, 2024

Kenneth wants to start contributing end-of-quarter payments of $1,800 to his RRSP for the next five years. If money earns interest of 7% compounded annually,

a) How much will Kenneth have in his RRSP 5 years from now?

b) After the five years, Kenneth plans to use his earnings to purchase an 8-year annuity that is expected to earn 6.2% compounded monthly. What monthly payment will Kenneth receive with this annuity?

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