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

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.