Your friend is a higher rate taxpayer and has a large amount in a savings account which is earning 3% interest.  He is worried that he will exceed the £500 of interest that he can earn free of tax as a higher rate taxpayer.  Work out for him how much he would need to have in his savings account for a year before he exceeded the £500 limit.

At his bank, Davide put $25,000 into his Registered Retirement Savings Plan (RRSP). He lives in Quebec and pays the highest tax rate of 53.31 percent. How much of a return can Been this anticipate getting for this donation? 1 $13,328 2 $25,000 3 $11,673 4  $15,786 5 Similar to Tax-Free Savings Accounts (TFSAs), RRSPs really aren't deductible for tax purposes, and no return is anticipated.

Bella Wans is interested in buying a new motorcycle. She has decided to borrow the money to pay the $25,000 purchase price of the bike. She is in the 33% income tax bracket. She can either borrow the money at an interest rate of 7% from the motorcycle dealer, or she could take out a second mortgage on her home. That mortgage would come with an interest rate of 9%. Interest payments on the mortgage would be tax deductible for Bella, but interest payments on the loan from the motorcycle dealer could not be deducted on Bella's federal tax return. a. Calculate the after-tax cost of borrowing from the motorcycle dealership. b. Calculate the after-tax cost of borrowing through a second mortgage on Bella's home. C. Which source of borrowing is less costly for Bella? d. Should Bella consider any other factors when deciding which loan to take out?

Please help me with e and f. Thanks!