Joel makes regular (end of term) deposits into his RRSP (Registered Retirement Savings Plan) that will be converted into an RRIF (Registered Retirement Income Fund) 20 years from now. During retirement Joel would like to receive $5,400 at the end of every six months for 22 years. If interest is 3.28% compounded semi-annually (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 Joel have in his RRIF to receive payments of $5,400 at the end of every six months? P/Y= PV = $ P/Y= C/Y= PV = $ PMT=$ C/Y= N= 2) What payment will Joel have to make at the end of every six months into his RRSP so that there is enough money in his RRIF at the start of his retirement? PMT= $ FV = $ N= I/Y = FV = $ I/Y = % %

Joel makes regular (end of term) deposits into his RRSP (Registered Retirement Savings Plan) that will be converted into an RRIF (Registered Retirement Income Fund) 20 years from now. During retirement Joel would like to receive $5,400 at the end of every six months for 22 years. If interest is 3.28% compounded semi-annually (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 Joel have in his RRIF to receive payments of $5,400 at the end of every six months? P/Y= PV = $ P/Y= C/Y= PV = $ PMT=$ C/Y= N= 2) What payment will Joel have to make at the end of every six months into his RRSP so that there is enough money in his RRIF at the start of his retirement? PMT= $ FV = $ N= I/Y = FV = $ I/Y = % %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 44P

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