You are a financial planner for Kelly Roberts. Kelly has just started a new job as an IT programmer for the Australian government. They will pay her a salary of AUD$70,000 p.a. She expects her salary to grow at 3% p.a. each year based on previous data. Inflation in Australia is 1%. After a detailed discussion, she has decided that she will deposit 20% of her salary by automatic withdrawals: half into a TFSA; half into a taxable account. The income on the TFSA is never taxed. The income in the taxable account is taxed at 35% p.a. She is an aggressive investor who expects a nominal annual return of 8% p.a. on both accounts. a) Calculate the following amounts after 8 years, all payments made at year end. 1. The nominal value in the TFSA 2. The after-tax nominal value in the taxable account b) Explain to Kelly, using calculations, whether inflation is a major concern for her investments or not. c) Explain to Kelly two assumptions you have made in your calculations and explain two examples which would make your calculations inaccurate