Rousan contributed $1900.00 at the beginning of every month to an RRSP. Interest on the account is 4.95% compounded monthly. If she converted the balance after 13 years into an RRIF paying 7.1% compounded quarterly and makes equal quarterly withdrawals for 20 years starting three months after the conversion into the RRIF, what is the size of the quarterly withdrawal? Question 4 options: A) $9789.48 B) $11 463.51 C) 1071.47 D) 3831.66 E) $8232.21
Rousan contributed $1900.00 at the beginning of every month to an RRSP. Interest on the account is 4.95% compounded monthly. If she converted the balance after 13 years into an RRIF paying 7.1% compounded quarterly and makes equal quarterly withdrawals for 20 years starting three months after the conversion into the RRIF, what is the size of the quarterly withdrawal? Question 4 options: A) $9789.48 B) $11 463.51 C) 1071.47 D) 3831.66 E) $8232.21
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 6CE: Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions...
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Rousan contributed $1900.00 at the beginning of every month to an RRSP. Interest on the account is 4.95% compounded monthly. If she converted the balance after 13 years into an RRIF paying 7.1% compounded quarterly and makes equal quarterly withdrawals for 20 years starting three months after the conversion into the RRIF, what is the size of the quarterly withdrawal?
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