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(2) Mr. Tee earns over $100,000 per year and his marginal tax rate on interest is 45%. He is considering whether to start an
(2) Mr. Tee earns over $100,000 per year and his marginal tax rate on interest is 45%. He is considering whether to start an RRSP. He plans to put $10,000 per year in the RRSP, to be invested in a fund that earns a rate of interest of 8%. How much money will he have in his RRSP after 20 years? If he withdraws in one lump sum and pay 50% taxes, how much money will he have? marks) (b) If he does not put $10,000 per year in his RRSP, how much more taxes must he pay annually? (2 marks) () If he invests annually the $10,000 minus the additional taxes in (b) outside his RRSP, in the fund (8% interest), how much money will he have after 20 years? (4 marks)
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
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