# Thread: [MOVED] What max amt can be withdrawn?

1. ## [MOVED] What max amt can be withdrawn?

Hi, can someone please check if I did this correctly... Thanks

Mr. Ng contributed \$500 to an RRSP at the end of each calendar quarter for the last 20 years. The plan earned 10% compounded quarterly for the first 10 years and 12% compounded quarterly for the last 10 years. He is converting the RRSP to a Registered Retirement Income Fund (RRIF) and intends to withdraw equal amounts at the beginning of each month for 15 years. If the funds in the RRIF earn 8.25% compounded monthly, what maximum monthly amount can be withdrawn?

PMT 500 M 4 T 20 YEARS J1=10% J2= 12%

FV1 = 500 [1+10%/4] = 33701.27677
10%/4
FV=33701.277 (1+12%/4)^10*14 = 37700.62987

FV=FV1+FV2=109934.8385+37700.62987=147635.468

BEGINNING PV (DUE) = PMT [1-(1+I)^-n ] *(1+i)

147635.468=PMT [1-(1+8.25/12)^15*12 * (1+8.25%/12)
8.25/12

PMT 1,422.49

2. Please reply with clear definitions of the various different variables, along with whatever formulas you are supposed to be using. Kindly please also explain what you're doing. For instance, I have no idea what "PMT 500 M 4 T 20" might mean.

Thank you!

Eliz.

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