Problem
When Leslie retired at age 65, her sheltered savings provided her with a before-tax income of $4,000 per month at the BEGINNING of each month. Her RRSP investments were earning 6% compounded annually. She had enough in her RRSP to provide this monthly income until age 95 and also to leave an estate worth $150,000. Unfortunately, Leslie did not receive the full benefit from her RRSP as she passed away at age 85. Her nephew, Robin, will inherit the after-tax balance of Leslie's RRSP. How much will he receive if Leslie's marginal tax rate is 30% and Robin's marginal tax rate is 35%?