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First, we need to calculate the future value of Taylor's investment in her TFSA after 6 years.
The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial investment), which is $12,000
r = the annual interest rate (in decimal form), which is 7%
n = the number of times the interest is compounded per year, which is 26 (bi-weekly)
t = the number of years the money is invested for, which is 6 years
Plugging in the values:
A = $12,000(1 + 0.07/26)^(26 * 6)
A = $12,000(1 + 0.00269230769)^(156)
A = $12,000(1.00269230769)^(156)
A = $12,000(1.57116129196)
A = $18,854.07
Therefore, after 6 years, Taylor will have $18,854.07 in her TFSA to travel with.