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Mrs. Chacon changes employers at age 48. She is given $135000 as her vested benefits in the company's pension plan. She invests this money in
Mrs. Chacon changes employers at age 48. She is given $135000 as her vested benefits in the company's pension plan. She invests this money in an RRSP (Registered Retirement Savings Plan) paying interest at 6%/year compounded annually and leaves it there until her ultimate retirement at age 65. She plans on making 25 annual withdrawals from this fund, the first withdrawal on her 65th birthday. Determine the size of these withdrawals.
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