Annual contributions of $1,000 will be made to a TFSA for 25 years. The contributor expects investments within the plan to earn 7% compounded annually. What will the TFSA be worth after 25 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 69 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 %

Annual contributions of $1,000 will be made to a TFSA for 25 years. The contributor expects investments within the plan to earn 7% compounded annually. What will the TFSA be worth after 25 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 69 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 %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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Answer the following questions using Excel's RATE, NPER, PMT, PV and FV functions. 1. If you contribute $1000.00 into an RRSP every six months for fifteen years and interest on the deposits is 8% compounded semi-annually, how much would the balance in the RRSP be after the last contribution?
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