Aida is interested in buying a condo as she has been renting for the last 5 years. She believes she understands how the Home Buyers Plan (HBP) works and is aware that the legislation governing the HBP allows for a maximum withdrawal amount of $35,000 from a Registered Retirement Savings Plan (RRSP). She also knows that she has to pay at least 1/15th of the amount that she borrows under this plan. As of today, her RRSP has a market value of $56,320. She is however only looking to withdraw the minimum amount from her RRSP for a conventional mortgage for a property valued at $160,000. The only question she has is what would be the minimum annual amount that she would have to repay to her RRSP based on the amount she withdraws for the HBP?

Select one:

a.

$3,045.33

b.

$2,333.33

c.

$3,433.33

d.

$2,133.33

e.

$3,754.67