Reference no: EM132662005
John Jones, a 25-year-old university graduate, wishes to retire at age 65. To supplement other sources of retirement income, he plans to deposit $2,000 each year into a tax-free savings account (TFSA). The TFSA will be invested to earn an annual return of 10% per year, compounded annually, over the next 40 years.
Question A. If John makes annual end-of-year $2,000 deposits into the TFSA, how much would he have accumulated by his 65th birthday.
Question B. If John decides to wait until age 35 to begin making annual end-of-year $2,000 deposits into the TFSA, how much would he have accumulated by his 65th birthday.
Question C. Using your findings in Part A & Part B, discuss the impact of delaying making deposits into the TFSA for 10 years, (Age 25 to Age 35) on the amount accumulated by John's 65th birthday
Question D. Rework Parts A, Part B and Part C assuming John makes all deposits at the beginning rather than at the end of each year. Discuss the effect of beginning-of-year deposits on the future value accumulated by his 65th birthday.
|
Develop a plc programm to control the five pls
: Develop a plc programm to control the five PLs in the stack light by using the switches connected to the input modul of the remot IO, this is a direct example
|
|
How much income must she report for tax purposes
: If Silver distributes $900,000 to Javiera on December 31, how much income must she report for tax purposes
|
|
What is Cardinal Corporation taxable income
: Cardinal has $150,000 of accumulated E & P at the end of the prior year, What is Cardinal Corporation's taxable income after these three items into account
|
|
What is the sunk or stranded and cost
: What is the sunk, or stranded, cost? What is the contract? Was the contract breached?
|
|
Discuss the impact of delaying making deposits
: Discuss the impact of delaying making deposits into the TFSA for 10 years, (Age 25 to Age 35) on the amount accumulated by John's 65th birthday
|
|
Write a strategic plan using given details
: Write a 150-250 word strategic plan defining how the nursing practice intervention will be implemented in the capstone project change proposal.
|
|
Calculate the value at the end of three years
: The Growth Fund of America sells Class A shares with a front-end load of 5%. Growth Fund also sells Class B shares with a 12b-1 fee of 1.0% per year.
|
|
How is the distribution treated for tax purposes
: Pam's stock basis is $11,000; Jon's stock basis is $26,000. How is the distribution treated for tax purposes
|
|
Expected probability of default
: If a prospective borrower has a debt-equity ratio of 0.4 and sales-asset ratio of 1.8, the expected probability of default is?
|