Mini-Case E: (1 mark)
Today, January 1, 2025, Leila is 45 years old and has just inherited a significant sum of money. She
has never contributed to her Tax-Free Savings Account (TFSA) and wants to maximize her
contribution today, including all available carryforward room. Moving forward, she plans to contribute
the maximum annual amount of $7,000 at the beginning of each year on January 1st. Assume the
TFSA annual limit remains at $7,000 until she turns 65. She expects to earn 7% interest,
compounded weekly. How much will her TFSA be worth in 20 years? See Table C.
TFSA Dollar Limits and Cumulative Totals
2009-2012 2013-2014 2015 2016-2018 2019-2022 2023 2024 2025 estimated
$5,000 $5,500 $10,000 $5,500 $6,000 $6,500 $7,000 $7,000
$20,000 $31,000 $41,000 $57,500 $81,500 $88,000 $95,000 $102,000