How much money in total would the lender receive

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Reference no: EM133497023

1) Sita is 66 years old and had to repay her entire Old Age Security (OAS) pension last year as she earned over the maximum income recovery threshold due to the significant withdrawals from her Registered Retirement Savings Plan (RRSP) for her two-month trip to India in 2022. This year, she is on a very limited budget and wants to plan for 2023. She knows that the OAS clawback or her repayment would be 15% of the difference between her net income of $97,346 and the minimum threshold amount of $86,912. She currently receives an annual OAS pension of $8,292 and is wondering how much of her OAS pension she will get to keep. Ignore taxes. For 2023: Minimum Income Recovery Threshold: $86,912 Maximum Income Recovery Threshold: $141,917 Select one: a. $5,973 b. $3,676 c. $6,727 d. $1,565 e. $6,982

2) Ariane has a daughter, Serena that is 8 years old. Ariane was not exposed to finances growing up and wanted to teach her daughter some concepts. She decided to start with simple interest even though this type of interest loan is rarely used. She asked Serena, if you invest $10,000 at a simple annual interest rate of 6.5%, how much money in total would the lender receive after 5 years? Select one: a. $10,000 b. $13,250 c. $650 d. $15,000 e. $1,350

3) Lennox has never been very strong in looking after his personal finances. He has always been on a tight budget and lived pay cheque to pay cheque during his working years and tried to contribute as much as possible to his Registered Retirement Savings Plan (RRSP). He is now age 71 and was told by his investment advisor that he must take action before December 31st of this year regarding his RRSP. He just can't remember what his investment advisor said about the different conversion options and knows that one of the options is not tax efficient. Which is the least tax efficient? Select one: a. Transfer to a registered annuity. b. Transfer the funds to a Registered Retirement Income Fund (RRIF). c. Cash in the RRSP. d. Purchase a term annuity. e. Purchase a life annuity.

4)Kevin is living life in Banff, Alberta. He works at a large hotel during the year. On his days off, in the summer he hikes and camps while in the winter he skis. He was recently promoted to manager and now earns $80,000. All of his disposable income is used to pay for his new Jeep, his debts, and his living expenses. What is Kevin's Debt-to-Asset ratio?

Reference no: EM133497023

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