# At the age of 25, Tasha Fellows obtained her university degree and entered the workforce. She sought

## Question:

The advisor provided Tasha with scenarios of investing $100 per month at 2% return at different age ranges and determined the value of her investment at age 65.

Tasha was shown that starting to contribute at a later age but still wanting to reach a goal of $73 566 would require larger monthly contributions.

Age Started Monthly Contributions

35................................................$150

45................................................$250

QUESTIONS

1. How much more will Tasha have in her TFSA if she invests the $100 per month starting at age 25 compared to starting at age 35?

2. To reach a goal of $73 566, what is the total amount of contributions necessary if Tasha were to begin investing at age 45?

3. If Tasha begins her contributions at age 45, how much interest will be earned on the contributions if

(a) Her contributions are $100 per month?

(b) Her contributions are $250 per month?

4. Assume Tasha's salary is $48 000 per year. Calculate the percentage of her monthly salary that would go toward her retirement plan goal of $73 566

(a) If she began investing $150 monthly at age 35?

(b) If she began investing $250 monthly at age 45?

## Step by Step Answer:

**Related Book For**

## Contemporary Business Mathematics with Canadian Applications

**ISBN:** 978-0134141084

11th edition

**Authors:** S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs