Asked by Jessil Plenos on May 07, 2024
Verified
Gloria has just made her ninth annual $2,000 contribution to her Tax-Free Savings Account (TFSA). She now plans to make semi-annual contributions of $2,000. The first contribution will be made six months from now. How much will she have in her TFSA 15 years from now if the plan has earned and will continue to earn 5% compounded quarterly?
Semi-annual Contributions
Payments or deposits made twice a year into a financial account or investment plan.
Tax-Free Savings Account
A type of savings account that offers tax benefits, allowing individuals to earn interest or other returns without taxation.
- Estimate the value of uniform payments into savings accounts over an extended period, including the influence of compound interest.
- Assess the influence of diverse interest rates and compounding frequencies on the augmentation of savings and investment portfolios.
Verified Answer
JN
Learning Objectives
- Estimate the value of uniform payments into savings accounts over an extended period, including the influence of compound interest.
- Assess the influence of diverse interest rates and compounding frequencies on the augmentation of savings and investment portfolios.