True about the home buyers plan

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Reference no: EM131942782

1. Ethan sells his car to Seamus. Seamus promises to pay Ethan $ 1,090 at the end of each year for 12 years. What is the present value of Seamus's promised payments if the interest rate is 66%?

2. Which of the following is true about the Home Buyers' Plan?

A. It's a government program which enables first time home owners with less than five percent down payment to purchase a home using CMHC insurance.

B. It's a government program exempting Canadian first time home buyers in certain provinces from land transfer tax.

C. It's a government program allowing first time home buyers to withdraw $ 25,000 from their RRSPs tax free as long as paid back within fifteen years.

D. It's a government program allowing first time home buyers to withdraw $ 20,000 from their RRSPs tax free as long as paid back within ten years.

Reference no: EM131942782

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