(2) Mr. Tee earns over $100,000 per year and his marginal tax rate on interest is...

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(2) Mr. Tee earns over $100,000 per year and his marginal tax rate on interest is 45%. He is considering whether to start an RRSP. He plans to put $10,000 per year in the RRSP, to be invested in a fund that earns a rate of interest of 8%. How much money will he have in his RRSP after 20 years? If he withdraws in one lump sum and pay 50% taxes, how much money will he have? marks) (b) If he does not put $10,000 per year in his RRSP, how much more taxes must he pay annually? (2 marks) () If he invests annually the $10,000 minus the additional taxes in (b) outside his RRSP, in the fund (8% interest), how much money will he have after 20 years? (4 marks) (2) Mr. Tee earns over $100,000 per year and his marginal tax rate on interest is 45%. He is considering whether to start an RRSP. He plans to put $10,000 per year in the RRSP, to be invested in a fund that earns a rate of interest of 8%. How much money will he have in his RRSP after 20 years? If he withdraws in one lump sum and pay 50% taxes, how much money will he have? marks) (b) If he does not put $10,000 per year in his RRSP, how much more taxes must he pay annually? (2 marks) () If he invests annually the $10,000 minus the additional taxes in (b) outside his RRSP, in the fund (8% interest), how much money will he have after 20 years? (4 marks)

Answer rating: 100% (QA)

assuming that his tax does not change over the 20 years Calculate his after tax incomeit would be Af... View the full answer