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Momin plans to buy a house on cash instead of paying mortgage. He plans to set aside $14 400 at the end of each year
Momin plans to buy a house on cash instead of paying mortgage. He plans to set aside $14 400 at the end of each year for 15 years. He puts his savings in a Tax-Free Savings Account (TFSA) and invests them in a high risk mutual fund, which has traditionally earned 12.2% annually. Money decreases (yes, decreases. HINT: k will be negative) in value by 2.5% per annum as well. How much accumulated money will Momin have at the end of the 15 years and how much of that will be interest?
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