Karen, an executive with ABC Inc. earns $200,000 per year. She opened a family RESP for her
Question:
Karen, an executive with ABC Inc. earns $200,000 per year. She opened a family RESP for her two children Scott (aged 7) and Belinda (age 9) on March 1, 2020. Neither child has ever been a beneficiary of an RESP. Karen makes a $ 5,701 contribution (50% for Scott and 50% for Belinda) to the plan when she opens it. What will the balance in the fund be on March 1, 2022, assuming Karen makes no further contribution to the Plan, and all sources of other potential income to the plan are maximized, and the Plan earns a nominal rate of return of 1.94% per year. Round your answer to the nearest dollar. Do not include signs (e.g. %, $ etc.)
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young