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Business, 12.06.2020 17:57 alexam2007

Ricardo is aware that he should save as much as possible early in his career while his personal responsibilities are minimal. Therefore, he has adopted an aggressive savings plan – put aside $1,500 in his TFSA at the beginning of each month for a year. (He has never contributed to a TFSA and has sufficient contribution room.) Ricardo’s savings are expected to earn 2% per annum, compounded semi-annually and he will make his first contribution 6 months from today. How much will he have in his TFSA in 2 years’ time if no further contributions are made?

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