48

An investor earns $8,000 in income over the 5-year life of an index-linked guaranteed investment certificate (GIC) in a non-registered account. Assuming he is in a 26% marginal tax bracket, how much income tax is owed in the year of maturity?

Select one:

a. $1,040

b. $2,080

c. $0

d. $2,260

49.

What is the amount of Canada Education Savings Grant (CESG) the federal government will contribute this year to the RESP of a 8-year old child in a family earning income of $60,000 and contributing $2,000 in the childs RESP?

Select one:

a. $500.00

b. $550.00

c. $450.00

d. $400.00