According to Statistics Canada data, the Household Saving Rate in Canada has been decreasing for more than two decades. The Household Saving Rate is a ratio comparing the amount of money set aside per annum in a saving plan, to the amount of household income per annum. Since 1990, the Household Saving Rate reached a high of 15.40 percent in the second quarter of 1993, and then started to decline to a record low of 0.20 percent in the first quarter of 2005.

In contrast, Households Debt in Canada for the same period has been increasing. The Household Debt Rate is the ratio comparing the amount of household debt, to personal disposable income. According to Statistics Canada data, the Household Debt Rate reached a high of 165.92 percent in the third quarter of 2015 from a record low of about 85.00 percent in the first quarter of 1990.

In an attempt to correct this negative trend and encourage Canadians to save money and build wealth, the Conservative Government of Canada introduced the Tax Free Saving Account (TFSA) in 2009. The TFSA is a tool designed to help Canadians accumulate wealth. It is a tax free investment vehicle that allows Canadians over the age of 18 to benefit from holding cash, GICs, stocks, mutual funds, bonds, etc. Under the TFSA umbrella, these investments will grow tax free until the account holder decides to remove them from the investment vehicle. Account holders are not required to pay tax on any capital gains including the interest that the account accumulates.
When the TFSA was first introduced in 2009, the maximum annual contribution was set at $5000. It increased to $5500 in 2013, and then further rose to a maximum annual contribution of $10000 in 2015. However, after winning a majority government in 2015, the Liberal Government announced a planned reduction in the maximum annual contribution limit back to the 2013 amount of $5500.
There is no penalty if money is withdrawn from a TFSA early. This causes some Canadians to use the TFSA for other immediate needs such as short term vacation and travel planning, or for a down payment (for a car or home). Notwithstanding, the full benefit of the TFSA is usually realized when the funds are invested in securities for a very long period of time.
Questions
1. Assuming you were 18 in 2009 when the government introduced the TFSA, how much money could you have in the account by the end of 2016 if you were able to use your maximum contribution each year (not including any interest or other gains)
2. Assuming the new maximum contribution introduced by the Liberal Government will not change in the future, write an equation of a line that can be used to calculate the maximum amount of money in your TFSA when you turn 71 years old (not including any interest or other gains).

Household saving rate in Canada 18 16 14 * 12- 10- 8- 4 - 2005 2010 1990 1995 2000 2015 Q4 Rate % Canada household debt to disposable income 180 160 140 - 120 100 80 1990 1995 2000 2005 2010 2015