Lois is reviewing her client Raj's retirement plan.

Lois must solve for the annual rate of return that grows Raj's TFSA from $10,000 today to $42,000 in five years while adding $5,000 at each year-end. The future value equation includes both the compounded current balance and the future value of the annual contributions. Solving $10,000(1+r)^5 + $5,000[((1+r)^5 - 1) / r] = $42,000 produces an annual return of approximately 6.36%. Option B and option A are close but do not reach the required target when the timing of contributions is treated as year-end. Option D overstates the required return. Because the account is a TFSA, the calculation focuses on investment growth rather than tax on withdrawals. In AFP retirement planning, contribution timing and compounding assumptions must be explicit; small timing changes can alter the required return. Study Guide focus: future value, TFSA planning, retirement projections, required return, and contribution timing.

===============