Shira is ready to buy a house as she is tired of renting. She has an idea of how the Home Buyers Plan(HBP) works. For one thing, she knows that the current legislation governing the HBP allows for amaximum withdrawal amount of $35,000 from a Registered Retirement Savings Plan (RRSP). She ishowever only looking to withdraw the minimum amount from her RRSP for a conventional mortgagebased on a property valued at $160,000. She also knows that she has to pay at least 1/15th of theamount that she borrows under this plan. As of today, her RRSP has a market value of $56,320. Whatis the minimum annual repayment required based on the amount she is looking to withdraw from herRRSP under the HBP?Select one:O a. $3,045.33O b. $3,754.67O c. $2,133.33O d. $2,333.33Oe. $3,433.33

The idea of a minimum annual payback is related to some government initiatives, such Canada's Home…

based on a property valued at $160,00 amount that she borrows under this plan. As of today, her RRSP has a market value of $56,320. What s the minimum annual repayment required based on the amount she is looking to withdraw from her RRSP under the HBP?

based on a property valued at $160,00 amount that she borrows under this plan. As of today, her RRSP has a market value of $56,320. What s the minimum annual repayment required based on the amount she is looking to withdraw from her RRSP under the HBP?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

Shira is ready to buy a house as she is tired of renting. She has an idea of how the Home Buyers Plan
(HBP) works. For one thing, she knows that the current legislation governing the HBP allows for a
maximum withdrawal amount of $35,000 from a Registered Retirement Savings Plan (RRSP). She is
however only looking to withdraw the minimum amount from her RRSP for a conventional mortgage
based on a property valued at $160,000. She also knows that she has to pay at least 1/15th of the
amount that she borrows under this plan. As of today, her RRSP has a market value of $56,320. What
is the minimum annual repayment required based on the amount she is looking to withdraw from her
RRSP under the HBP?
Select one:
O a. $3,045.33
O b. $3,754.67
O c. $2,133.33
O d. $2,333.33
Oe. $3,433.33

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