Farah has $600,000 in her RRSP and wishes to retire. She is considering using the funds to purchase an annuity that earns 5% compounded annually and pays her $3500 at the end of each month. If she buys the annuity, for how long will she receive payments?

Compounded Annually

The process where interest is added to the principal sum of a deposit or loan once a year, and from then on, the interest that has been added also earns interest.

Monthly Payments

Payments that are made once every month.

Annuity

An investment vehicle that provides a consistent payment flow to a person, commonly utilized as a means of financial support for retired individuals.