Your earnings for last year were $42 000.How much of an RRSP contribution can you make this year (if you have no other RRSP room)?
A)$5670
B)$4200
C)$7560
D)Insufficient information

Question

Quizplus · Accepted Answer

The RRSP contribution room for the next year is calculated as 18% of the previous year's earned income, up to a maximum of $27 830. Therefore, the contribution room for this year would be 18% x $42 000 = $7560.

Your Earnings for Last Year Were $42 000