Solomon contributed $20,000 to his RRSP at a time when his marginal tax rate was 52%. At retirement, which he anticipates being 20 years from now, he expects to continue to have a marginal tax rate of 52%.

Based on a discount rate of 5%, what is the present value of the amount of tax Solomon will pay on a withdrawal of $20,000 from his RRSP in his first year of retirement?

O a) so

O b) $3,834

O c) $3,920

( d) $10,400