Twelve years ago, Mr. Lawton rolled a $33,000 retiring allowance into an RRSP that subsequently, earned 11.6% compounded semiannually. Three years ago he transferred the funds to an RRIF. Since then, he has been withdrawing $2600 at the end of each quarter. If the RRIF earns 9.7% compounded quarterly, how much longer can the withdrawals continue? (Do not round intermediate calculations and round up the number of payments, n, to the next whole number.) ____years and ____months.
Twelve years ago, Mr. Lawton rolled a $33,000 retiring allowance into an RRSP that subsequently, earned 11.6% compounded semiannually. Three years ago he transferred the funds to an RRIF. Since then, he has been withdrawing $2600 at the end of each quarter. If the RRIF earns 9.7% compounded quarterly, how much longer can the withdrawals continue? (Do not round intermediate calculations and round up the number of payments, n, to the next whole number.) ____years and ____months.
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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Twelve years ago, Mr. Lawton rolled a $33,000 retiring allowance into an RRSP that subsequently, earned 11.6% compounded semiannually. Three years ago he transferred the funds to an RRIF. Since then, he has been withdrawing $2600 at the end of each quarter. If the RRIF earns 9.7% compounded quarterly, how much longer can the withdrawals continue? (Do not round intermediate calculations and round up the number of payments, n, to the next whole number.) ____years and ____months.
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