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Question $23(1$ point$)$

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Maggy has a $$6,000$ outstanding HBP balance against which she must make minimum payments of $$1,000$ for each of the years $2018$ to $2023$ inclusive, after which the plan's balance will be zero. Maggy doubles her annual payment in $2018$ and pays $$2,000$ instead of the required minimum payment of $$1,000.$ Identify the statement that is correct.

The extra $$1,000$ payment will reduce the outstanding balance to $$4,000$ and Maggy's minimum repayment amount will be adjusted to $$800$ for each of the years $2019$ to $2023$ inclusive.

The extra payment in $2018$ will be disallowed as Maggy must follow the original repayment schedule.

The extra $$1,000$ payment will shorten Maggy's minimum repayment schedule by $1$ year as she will be required to continue the minimum $$1,000$ payments but with the last payment finishing in $2022.$

The extra payment in $2018$ will allow Maggy to skip the $2019$ and $2020$ payments without triggering any tax consequences

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