You're asked for MONTHLY, not annual...

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- Jul 8th 2010, 10:27 AM #1

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## Rrif

If the funds in the RRIF earn 8.25% compounded monthly, what maximum monthly amount can be withdrawn?

PV = 147,635.48, I want to withdraw at the beginning of every month for 15 yrs.

I figured it out that i can withdraw $11,251.67 at the beginning of each year for 15 yrs.

Is this correct?

thanks,

- Jul 8th 2010, 01:20 PM #2

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- Jul 8th 2010, 08:37 PM #3

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- Jul 9th 2010, 12:09 AM #4

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11,251.67 * 180 months = 2,025,300.60; c'mon Pete, you should realise that's impossible...

11251.67 is the amount of interest earned on opening amount less one payment of 11251.67,

for one YEAR at 8.25% compounded annually (not monthly):

(147,635.48 - 11251.67) * .0825 = 11251.67

Soooooo: what the heck are you doing?!

At 8.25% compounded monthly with 1st payment right away, the MONTHLY payment is 1422.49

- Jul 9th 2010, 10:31 AM #5

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