Asif Received a Bonus of $10 000, Which He Immediately

question 174

Multiple Choice

Asif received a bonus of $10 000, which he immediately invested in a fund earning 9.25% compounded semi-annually through his Tax Free Savings Account. Five years later, Asif plans to make the first semi-annual withdrawal of $1000. After how many withdrawals, the fund will be completely depleted?

• A) 29
• B) 28
• C) 27
• D) 20
• E) 10

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Definitions:

Research And Development

Activities related to the innovation, introduction, and improvement of products and processes.

Trade-In Allowance

The credit a buyer receives for turning in an older item (such as a car) when purchasing a new one, reducing the out-of-pocket cost of the new purchase.

List Price

The official selling price of a product or service before any discounts are applied.

Boot

Additional value or cash added to a transaction to even out an exchange or transfer of assets.