Annual contributions of $2,500 will be made to a TFSA for 20 years. The contributor expects investments within the plan to earn 6.4% compounded annually.
Annual contributions of $2,500 will be made to a TFSA for 20 years. The contributor expects investments within the plan to earn 6.4% compounded annually. What will the TFSA be worth after 20 years if the contributions are made:
a. At the end of each year? (Round your answer to 2 decimal places.)
TFSA's worth $ ?
b. At the beginning of each year? (Round your answer to 2 decimal places.)
TFSA's worth $ ?
c. By what percentage does the answer to Part (b) exceed the answer to Part (a)? (Do not round intermediate calculations and round your final percentage answer to 1 decimal place.) Percent difference % ?
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Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova
1st Edition
0198802943, 978-0198802945
