Willi works as a power engineer for a steel manufacturer. In December of last year he received an unexpected production bonus. It's unlikely that he will receive the same amount this year. In February of this year while preparing for tax season, Willi realizes he will likely owe additional taxes due to the bonus. His regular salary income is taxed at an average rate of 30%, but his entire bonus income of $11,000 was taxable at a rate of 40%. Unfortunately, Willi has already used the bonus income to pay off his truck loan and does not have any cash available to make an RRSP contribution before the March 1st deadline. Willi is considering an RRSP loan from his bank at an equivalent annual interest rate of 3.32% to make a contribution. He would be required to make payments at the end of each month and repay the RRSP loan within one year. Willi accepts the terms of the RRSP loan, makes a contribution to his RRSP and uses the resulting tax refund to immediately reduce the loan balance before his first payment is due. What is the net impact of Willi using an RRSP loan to make a contribution at the end of February of this year, assuming he applies his refund to the outstanding balance before interest begins accruing on the loan balance? An RRSP loan will result in a net benefit of: $3161, $4201 or $4281