Emma has finished paying her parents and decides that she will divert most of those payments towards her daughter's RESP and her own RRSP. She will divert $600 monthly to her RRSP. Her daughter has just turned 4 years old and will enter university when she is 18 years old. Emma expects her daughter to contribute to her own education but plans to have $42,000 available when her daughter starts university. (RESPS have government grants; RRSP have tax deferrals and refunds and both have withdrawal rules. These will be ignored here. Only the tax-free growth will be assumed.) Emma has assembled a portfolio for her RRSP that will return 5.2% compounded monthly. The education portfolio will return 3.8% compounded monthly. a. How much must Emma deposit monthly to fund her daughter's education as planned?

Emma has finished paying her parents and decides that she will divert most of those payments towards her daughter's RESP and her own RRSP. She will divert $600 monthly to her RRSP. Her daughter has just turned 4 years old and will enter university when she is 18 years old. Emma expects her daughter to contribute to her own education but plans to have $42,000 available when her daughter starts university. (RESPS have government grants; RRSP have tax deferrals and refunds and both have withdrawal rules. These will be ignored here. Only the tax-free growth will be assumed.) Emma has assembled a portfolio for her RRSP that will return 5.2% compounded monthly. The education portfolio will return 3.8% compounded monthly. a. How much must Emma deposit monthly to fund her daughter's education as planned?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 54P

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