You are a third-year business student at StFX University and you just completed the course, Personal Finance.Your Aunt, who works in Finance, is so pleased that you did well in this course that she is gifting you $10,000 when you receive your degree next year.

Upon graduation, you will have a student loan balance of $42,000 that charges interest at 5%. Your monthly payment will be $400.You will also have a credit card with a balance owing of $2,500 that carries an interest rate of 20% and requires a minimum monthly repayment of $100.You have no other debt and will not need to purchase an automobile within the next five years. You plan to accept an offer with a company in Halifax, NS, and will move there immediately after graduation.You expect your annual salary to be approximately $50,000 for the first few years, leaving you with a monthly take-home pay of $2,900. Assume that any investment option that you choose will provide you with an annual rate of return of 8% before applying income taxes.

1. Use the six-step process to create your financial plan for the next five years.
2. Based on your financial plan created in part a), identify and describe how you will use the $10,000 gift from your Aunt.Be sure to consider the tax consequence of this action and explain why this is the best option for you (tie your answer into your five-year plan and show your calculation details for full marks).[4 points]