Part 1)

In a hypothetical country, government introduced a Tax-Free Savings Account (TFSA) in year 2000 to encourage its residence to save money. As the name suggests, TFSA is an account where account holders are not required to pay tax on any capital gains including the interest that the account accumulates. Each year the TFSA interest and limit are set by the federal government. This information is provided in columns B and C respectively. In addition, based on your income, you have a limit in mind for investment (column D).

Calculate earned and accumulated interest and populate columns E and F respectively.

Part 2)

What if the government decides to lift the limit every other year (odd years = no TFSA limit)? Calculate earned and accumulated interest and populate columns G and H respectively.

Clarification:

Part a) TFSA limit is the maximum amount you could deposit into your account. If you have $1000 and the TFSA limit is $400, you can only deposit $400 in your TFSA account and the interest is only applied to the $400.

Part b) In odd years there is no TSFA limit, so ignore the TSFA limit for odd years

Part a) and b) You cannot invest more than the investment amount in Column D. For example, if the TSFA limit is $1000 but you want to invest $100, you formula should consider the $100 for interest calculation.

Part a) and b) Accumulated interest is the total amount of interest summed up to a given point. Example: Accumulated interest for year 2003 is the sum of interest collected from 2000, 2001, 2002 and 2003.

Restrictions:

1- Your accumulated value must be a sum of two referenced cells: Hint: Something + Something Else

2- Columns A, B, C and cell E2, H2 are intentionally fixed and cannot be changed.

3- You cannot use any numbers in your formulas. You are only allowed to use relative references.

4- For part a) use IF function

5- For part b) You must use ISODD and nested IF functions.

barned Interest | Acumulated interest