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equal payments at the end of each month into his RRSP. If interest in his account...

equal payments at the end of each

month

into his RRSP. If interest in his account is

10.9%

compounded

semi annually

nd the balance after

eleveneleven

years is

$16,000 ,

what is the size of the

monthly

payment?

business   finance   
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Answer #1

Interest Rate, I = 0.109

Time Period, N = 132 months

Future Value, FV = $16,000

Present Value, PV = 0

Calculating Monthly Deposit,

Using TVM Calculation,

PMT = [PV = 0, FV = 16,000, N = 132, I = 0.109/12]

PMT = $63.22

So,

Monthly Deposit = $63.22

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