Camilla invested $X in her TFSA at the end of every three months for 7 years....
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Camilla invested $X in her TFSA at the end of every three months for 7 years. Her TFSA is linked to an index mutual fund that returns around 5.2% p.a. compounded semiannually for the first four years followed by 5% p.a. compounded monthly for the next three years. After 7 years, she gave the deposit to her son to aid in the purchase of an apartment in the future. Her son left the deposit in a savings account that earned interest at 4.5% p.a. compounded monthly and the balance of the savings account after 4 years is $41,876.38. Compute X. Camilla invested $X in her TFSA at the end of every three months for 7 years. Her TFSA is linked to an index mutual fund that returns around 5.2% p.a. compounded semiannually for the first four years followed by 5% p.a. compounded monthly for the next three years. After 7 years, she gave the deposit to her son to aid in the purchase of an apartment in the future. Her son left the deposit in a savings account that earned interest at 4.5% p.a. compounded monthly and the balance of the savings account after 4 years is $41,876.38. Compute X.
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SOLUTION We can break down the problem into two parts first we need to calculate the future value of ... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
Posted Date:
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