How much must elise deposit each month into retirement plan

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Elise plans to retire 20 years from now when she turns 65. She has $90,300 accumulated in RRSP and plan to deposit additional money each month to her RRSP for exactly 20 years, starting today. Twenty years from today, she plans to withdraw $14,000 to pay for a vacation and uses the remaining funds to buy an annuity that pays $7,300/month for 15 years, with the first withdrawal starting one month after she turns 65 ( i.e. 20 years and 1 month from today). She anticipates earning 7.5%, compounded monthly, the entire time.

Problem 1: How much must Elise deposit each month into her retirement plan?

Reference no: EM132973963

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