Mini-Case B The year is 2024. Ramy Anoub graduated three years ago with a Masters in Aerospace Engineering. He was happy to be finished his studies at last and embark upon his chosen career. Since graduating Ramy has purchased an electric car and condo on the Lachine Canal - both involving considerable debt. Ramy thought that with the salary he makes ($250,000) he should have no financial problems. But with his high car and condo payments, and uncontrolled spending on entertainment, he finds that his credit cards are always maxed out and he makes only the minimum payment. Sticking to any type of savings plan seems impossible. Ramy's company offers a Registered Contribution Pension Plan to which he and his employer each contribute $12,500 a year. They also offer a generous medical plan covering 80% of medical bills (his plan premium is $2,500). Nevertheless, Ramy's multiple sclerosis (MS) medication still costs him $4,320 a year. He is thankful that his only other medical bill involves $600 a year for dental work. Part 5: Ramy was born in May 1995. If he opened a Tax-Free Savings Account (TFSA), how much could he contribute today? Show your calculation year by year. Year Annual TFSA Limit Cumulative Total
Mini-Case B The year is 2024. Ramy Anoub graduated three years ago with a Masters in Aerospace Engineering. He was happy to be finished his studies at last and embark upon his chosen career. Since graduating Ramy has purchased an electric car and condo on the Lachine Canal - both involving considerable debt. Ramy thought that with the salary he makes ($250,000) he should have no financial problems. But with his high car and condo payments, and uncontrolled spending on entertainment, he finds that his credit cards are always maxed out and he makes only the minimum payment. Sticking to any type of savings plan seems impossible. Ramy's company offers a Registered Contribution Pension Plan to which he and his employer each contribute $12,500 a year. They also offer a generous medical plan covering 80% of medical bills (his plan premium is $2,500). Nevertheless, Ramy's multiple sclerosis (MS) medication still costs him $4,320 a year. He is thankful that his only other medical bill involves $600 a year for dental work. Part 5: Ramy was born in May 1995. If he opened a Tax-Free Savings Account (TFSA), how much could he contribute today? Show your calculation year by year. Year Annual TFSA Limit Cumulative Total
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Mini-Case B
The year is 2024. Ramy Anoub graduated three years ago with a Masters in Aerospace
Engineering. He was happy to be finished his studies at last and embark upon his chosen
career. Since graduating Ramy has purchased an electric car and condo on the Lachine
Canal - both involving considerable debt.
Ramy thought that with the salary he makes ($250,000) he should have no financial
problems. But with his high car and condo payments, and uncontrolled spending on
entertainment, he finds that his credit cards are always maxed out and he makes only
the minimum payment. Sticking to any type of savings plan seems impossible.
Ramy's company offers a Registered Contribution Pension Plan to which he and his
employer each contribute $12,500 a year. They also offer a generous medical plan
covering 80% of medical bills (his plan premium is $2,500). Nevertheless, Ramy's
multiple sclerosis (MS) medication still costs him $4,320 a year. He is thankful that his
only other medical bill involves $600 a year for dental work.
Part 5:
Ramy was born in May 1995. If he opened a Tax-Free Savings Account (TFSA),
how much could he contribute today? Show your calculation year by year.
Year
Annual TFSA Limit
Cumulative Total
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