Jerry just received his annual bonus. He received $20,000 and was wondering is he should pay down his mortgage debt or if he should invest the money. Hi mortgage rate is 5.9%, his average tax rate is 35% and his marginal tax rate is 47%. 

What is the minimum amount of non-registered GIC return Jerry would have to earn on an investment to make it a better option than simply paying down his mortgage?

Answer rating: 100% (QA)

To determine the minimum nonregistered GIC return Jerry would need to earn on an investment to make ... View the full answer