How much will need in the rrsp

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To compensate for the effects of inflation during their retirement years, the Pelyks intend to purchase a combination of annuities that will provide the following pattern of month-end income:

Calendar years, inclusive Income ($)

2025 to 2029 8,000

2030 to 2034 9,500

2035 to 2039 11,100

2040 to 2050 12,400

Question 1: How much will they need in their RRSPs when they retire at the beginning of 2025 to purchase the annuities, if the annuity payments are based on a rate of return of 6.9% compounded semiannually? (Do not round intermediate calculations and round your final answer to the nearest dollar.)

Reference no: EM132589944

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