Section I: Five (5) Multiple-Choice Questions (5 marks - 1 mark each) Highlight and underline your response.

1) On November 20, 2019, Shayne purchased 1,500 shares for a total of $5,450 in the company called Montreal Inc. During this one-year period, he received $5.75/share in dividends. Shayne sold them on November 19, 2020 as the share price went to $34.40/share upon the news that their coronavirus vaccine appears to be effective. What is Shaynes investment return during the one year that he held the shares? a) 48.37% b) 1,863% c) 19% d) 1,006% e) 46.25%

2) Mara has been working for 30 years at CIBC and is ready to retire this year at the end of December. The financial institutions pension plan is a Defined Benefit Pension Plan (DBPP). What will be her annual pension if she earns a pension based on a rate of 2% that is calculated using her average best three consecutive years of income? She has provided her salary for the last 7 years.

2014 2015 2016 2017 2018 2019 2020 $77,000 $76,200 $79,800 $77,800 $79,150 $80,125 $80,125 a) $46,900 b) $80,125 c) $47,880 d) $79,800 e) $26,600

3) Carrie is 71 years old. She invested $15,000 in her Registered Retirement Savings Plan (RRSP) 25 years ago; the current market value is $959,443. She has not touched the account since she opened it 25 years ago. What amount will she pay tax on when she withdraws it? a) Only on the initial investment of $15,000 b) On the entire amount she withdraws c) Only on the growth (i.e. difference between the market value and her initial investment) d) If she converts it to a Registered Retirement Income Fund (RRIF), then she can withdraw the amount and pay no taxes e) There is no tax to be paid in retirement 4) Sally is finding the discussion of a Will to be very sensitive. She also knows that most of us need a Will as the settling of an estate can be quite complicated. She most certainly does not want to leave behind a mess for any one to have to deal with. Sally does not yet have a Will and has been living in Quebec with her Common-Law spouse, Samuel for 20 years. They do not have children. Samuel has not found work for the last two years and with COVID-19, it is making the job search that more difficult. Sally wants to make sure that Samuel would be the beneficiary of her assets should something happen to her. In her research she was surprised to find out that Samuel is not considered an heir if there is no valid Will and that her assets would go to her family members who she has had a fallen out with and has not spoken to in years. a) True b) False

5) Sid is confused about two home value concepts, one being market value and the other replacement cost. You tell him that the market value of his home is the price he would get for his home on the real estate market, which includes the land. Replacement cost covers the cost to rebuild and does not include his land. For example, he may be able to sell his home for $750,000, but it would cost $500,000 to rebuild (i.e. to replace). Sids home was recently hit by a large storm that caused tremendous damage. Although Sid owns a replacement cost policy, he is not fully covered as he has not maintained the 80% coverage amount on the insurance policy. His home has a replacement cost of $500,000, but his insurance coverage totals $375,000. The damage from the storm totalled $125,000 to his home. How much will the insurance company pay for the damages? a) $117,188 b) $87,455 c) $93,750 d) $100,000 e) $125,000