1)Tom graduated in civil engineering from Concordia two years ago and decided to work in the remote area of northern Quebec. He is making great money and saving it all. What is Tom's average rate of tax if in 2019 he paid taxes of $57,132.74 on his gross income earned of $150,000? (ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings)

a)33.29%

b)49.97%

c)29.35%

d)38.09%

e)38.76%

2)Chun is ready to apply for a credit card and noticed that all credit cards are compounded daily (365 days per year). In trying to compare credit cards, Chun saw that the Bank of Montreal credit card's nominal interest rate was 24.9%, while CIBC's was 25.5%. She then noticed that the Bank of Nova Scotia's credit card had an effective interest rate of 27.36%. She is looking for the lowest interest rate in case she cannot make a credit card payment on time. Which credit card(s) would you recommend Chun apply for? (round to two decimal places)

a)CIBC's credit card

b)Bank of Nova Scotia's credit card

c)Bank of Montreal's credit card

d)Either the Bank of Montreal or Nova Scotia's credit card as the interest rates are equivalent

e)Either the CIBC or the Bank of Nova Scotia's credit card as the interest rates are equivalent

3)Shaun turned 20 on July 1, 2020 (resident of Quebec). His Aunt Mathilda gave him a lottery ticket which turns out to be a winning number where he won $20,000! He decided to put the money in a Tax-Free Savings Account (TFSA). He is however not familiar in how it works; he just knows that one of his buddies made a lot of money in his TFSA! He is wondering what the maximum TFSA contribution could be into his newly opened TFSA account. Any amount remaining, he would like to contribute it to his Registered Retirement Savings Plan (RRSP).Know that Shaun has never worked in the past and with COVID-19, he is still out of work. (see Table C and D)

a)Shaun can contribute $12,000 to his TFSA and can contribute $8,000 to his RRSP.

b)Shaun can contribute $17,500 to his TFSA and can contribute $0 to his RRSP.

c)Shaun can contribute $6,000 to his TFSA and can contribute $14,000 to his RRSP.

d)Shaun can contribute $20,000 to his TFSA.

e)Shaun is not able to contribute to his TFSA nor his RRSP.

4)Dina just started working for Telus and has become eligible to participate in their retirement plan where she contributes 8% of her gross salary on the 1^st of each month. Telus matches her contributions dollar for dollar in this plan. The plan averages an annual return of 6% interest compounded semi-monthly. Dina is 23 years old and plans to retire at age 60. What is the total amount that she will have when she retires? Dina's gross annual salary is $84,000.

a)$1,898,765

b)$1,726,744

c)$1,839,612

d)$1,804,893

e)$1,722,925

5)It is July 1, 2020 and Brittany has been working for the last 3.5 years since she graduated from Concordia's JMSB on December 31, 2016. She is a resident of Quebec and is looking to make her first Registered Retirement Savings Plan (RRSP's) contribution (including a catch-up for past years). Calculate the maximum contribution that she can claim as a deduction on her 2020 personal income tax return. (see Table D)

Brittany's annual gross salary:

2017: $75,000

2018: $85,000

2019: $96,000

2020: $110,000

a)$17,280

b)$19,800

c)$65,880

d)$56,800

e)$46,080

6)Net cashflows are determined by subtracting _________________.

a)your insurance deductible from all sources of income.

b)your fixed expenses from your total income.

c)your variable expenses from net income.

d)your expenses from your disposable (after-tax) income

e)your personal tax credits from your after-tax income.

7)Ajay and Ira are signing the real estate papers tomorrow on the purchase of their first home. They both have Registered Retirement Saving Plans (RRSPs) and are looking to use the Home Buyer's Plan (HBP) to make their down payment. As of today, July 1, 2020, the market value of Ajay's RRSP is at $29,565 and Ira's is at $36,348, what is the maximum amount they can currently withdraw from their respective RRSPs through the HBP for the total down payment on their dream home? (see Table E)

a)$64,565

b)$57,455

c)$70,000

d)$65,913

e)$50,000

8)There is a 21-day grace period with no interest being charged for cash advances on credit cards, which is why such cash withdrawals are so popular.

a)True

b)False

9)Linda opened her first credit card when she was a 19-year-old student at Concordia. Her mom had encouraged her to build credit history to establish a strong credit score. Linda wanted to use her credit cards occasionally, but it became too easy to use for everyday purchases with justification that travel points were being accumulated. At 24 years old, Linda owes on her multiple credit cards. Which statement made by Linda is correct?

a)"I carry a balance on my credit cards. The bank loves me as a customer as I pay monthly interest, resulting in a better credit score".

b)"My credit card companies, and my bank use my payment history and the amount of credit that I owe to determine my credit score".

c)"Checking my credit report is considered a soft inquiry which hurts my credit score, so it is best not to check".

d)"When I apply for a credit card or new loan, the creditor accesses my credit file to assess my creditworthiness, this hard inquiry impacts my credit score".

e)"I can exceed my credit card limit as my credit card company lets me do it with no impact".

10)Omar graduated from Concordia in December 2018. He started working at the Royal Bank of Canada (RBC) as an investment advisor on January 1, 2019. In 2019, his gross annual salary was $95,000 plus commissions of $10,500. As his skills were in high demand, RBC had also paid him an $8,000 signing bonus to join them on his first pay cheque on January 15, 2019. With the bonus, he made contributions of $4,500 to a Registered Retirement Savings Plan (RRSP) and $3,500 to a Tax-Free Savings Account (TFSA); note that his Canada Revenue Agency (CRA) Notice of Assessment stated he could make RRSP contributions of up to $10,000 (based on his previous part-time work when he was a student), and up to $28,500 to his TFSA. We are currently July 1, 2020 and Omar is ready to file his 2019 personal income tax returns. As a resident of Quebec, calculate his combined 2019 taxes payable. (see Table A; ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings)

a)$37,294.72

b)$36,149.45

c)$39,325.98

d)$38,260.12

e)$37,615.58