1.Ted has just stared investing in a Tax Free Savings Account (TFSA). He has $10,000 that he will invest immediately and will invest another 5,000 at the end of the year for the next 20 year. He expects a nominal annual return of 5%. How much money will he have in the TFSA in nominal dollars after 20 years?

2.Jenny's retirement plan assumes that she will live to 85 years of age, earn 8% on her investments and receive a before-tax income of $50,000 during her retirement if she draws on her capital. She had originally planned to retire at the age of 60 years. However, when she turned 60, she was in excellent health and enjoying her work. Therefore, she continued working until she was 65 years old. When Britney retired, how much less did she need in savings to meet her retirement objectives?

3. Savings compounded ____???________ would have the highest effective yield.

4.Ted and Jenny obtained a mortgage of $500,000, at 3%, amortized over 20 years and pay a monthly payment of $2,772.98799. They decided they could afford to pay an extra $400 per month on the regular payment. What would be there total interest saved over the entire life of the mortgage?