You just received an inheritance of $123,456. How long would you need to leave it in an RRSP earning 2.5% compounded semi-annually to earn $800 (end of) monthly for 20 years? Assume the same RRSP interest rates for the payment stage as the deferred stage. Hint: There are two stages here. a) Draw a timeline HERE. Comments b) Describe how you will solve this problem in one or two sentences. Work c) How long would you need to leave it in an RRSP earning 2.5% compounded semi-annually to earn $800 (end of) monthly for 20 years? Work SETTING ON /Y PMT PV CALCULATOR BGN or END P/Y C/Y
You just received an inheritance of $123,456. How long would you need to leave it in an RRSP earning 2.5% compounded semi-annually to earn $800 (end of) monthly for 20 years? Assume the same RRSP interest rates for the payment stage as the deferred stage. Hint: There are two stages here. a) Draw a timeline HERE. Comments b) Describe how you will solve this problem in one or two sentences. Work c) How long would you need to leave it in an RRSP earning 2.5% compounded semi-annually to earn $800 (end of) monthly for 20 years? Work SETTING ON /Y PMT PV CALCULATOR BGN or END P/Y C/Y
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You just received an inheritance of $123,456. How long would you need to leave it in an
RRSP earning 2.5% compounded semi-annually to earn $800 (end of) monthly for 20
years? Assume the same RRSP interest rates for the payment stage as the deferred stage.
Hint: There are two stages here.
a) Draw a timeline HERE.
Comments
b) Describe how you will solve this problem in one or two sentences.
Work
c) How long would you need to leave it in an RRSP earning 2.5% compounded semi-annually
to earn $800 (end of) monthly for 20 years?
Work
SETTING ON
PMT
PV
CALCULATOR
BGN or END
P/Y C/Y
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