it is January 1, 2021, Nicole is so excited after her first year working at her first job. She earned $50,000 in 2020 and because of the pandemic and living at home, she saved quite a lot of money. Now she can use what she learned in ADMS 2541 about what to do with the money. Her employer and she each contributed 4,000 to a defined contribution Pension Plan, which creates a pension adjustment of 8,000. Her marginal tax rate is 22% and her average tax rate is 14%. Inflation is 2%

What is the maximum she can contribute to her RRSP?

Assume she was able to contribute 1,200 to her RRSP and takes the tax refund she receives a month later and deposits it onto her TFSA, how much would she contribute to her TFSA?

At the start of 2021, she takes 5,000 from her savings account and invests it in an ETF with an expected rate of return of 6%. She opens an RRSP and contributes 1,200 and invests it in the same ETF. On July 1, she opens a TFSA and Deposits 4,00 in a GIC earning 3.0%, compounding monthly. How much would she expect to have in total in her all of her accounts (don't include pension) at the end of the year (A;10,812 B;10,724 C;10,692 D;10,632 E;10,448) *Multiple choice*