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Certified Financial Planner (CFP) Practice Exam · Question

Peter, age 85, holds a RRIF with a value of $300,000 on January 1st. He needs to determine his minimum withdrawal for the year. Based on the RRIF payment schedule, what is the minimum amount Peter must withdraw?

For individuals aged 85, the minimum RRIF withdrawal percentage is 7.00%. Thus, Peter's minimum withdrawal for the year is $300,000 * 0.0700 = $21,000.

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Question: Peter, age 85, holds a RRIF with a value of $300,000 on January 1st. He needs to determine his minimum withdrawal for the year. Based on the RRIF payment schedule, what is the minimum amount Peter must withdraw?

Answer options:

  • $15,000
  • $18,000 ✅ $21,000
  • $24,000

Correct answer: $21,000

Explanation: For individuals aged 85, the minimum RRIF withdrawal percentage is 7.00%. Thus, Peter's minimum withdrawal for the year is $300,000 * 0.0700 = $21,000.

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