1. Kelly is saving $1,600.00 at the beginning of each month. How soon can he retire if he wants to have a retirement fund of $345,000 and interest is 11.04% compounded monthly?
2. Serena wants to retire in 25 years. To plan for her retirement, she deposits $1,500 at the end of each year into an RRSP. After her last contribution she concerts the RRSP into an RTIF from which she wants to make 20 annual withdrawals. If the first withdrawal is one year after the last contribution and interest is 6.5% compounded annually, calculate the size of the withdrawal.
3. Sandra intends to retire in 15 years and would like to receive $3,000 every six months for 19 years starting on the date of her retirement. How much must Sandra deposit in an account today if interest is 8% compounded semi-annually?
4. Paul intends to retire in 15 years and would like to receive $8,000 every 6 months for 20 years, starting on the date of his retirement. How much must he deposit in an account today if interest is 5% compounded semi-annually?
5. How much does a depositor have to save at the beginning of every 6 months for 20 years to accumulate $1,000,000 if interest is 6.00% compounded semi-annually?