Darcy began making his monthly contributing to his RRSP at the age of 24. His average monthly contribution, starting 1 month after his 24th birthday, was $125 and his RRSP earned interest at an average rate of 7.5% compounded monthly. Darcy stopped making contributions when he retired at the age of 50 and started to withdraw a pension from his RRSP. Please show your answers for both in detail.
a.) Determine the amount in Darcy's RRSP on his 50th birthday.
b.) Darcy decides to re-invest the total amount of his RRSP to provide an annuity for his monthly income during his retirement. Suppose Darcy was able to obtain the same average interest rate and chose a 20-year term for his annuity. What monthly mention could he withdraw for the next 20 years?