Date

Tax Refund Not Used

Tax Refund Used to Pay Off RRSP Loan

Balance

Repayment

Interest 4.5%

Balance, end of month

Balance

Repayment

Interest 3%

Balance, end of month

Mar. 1, 2010

$3,000.00

-

$11.02

$3,011.02

$5,750.00

-

$14.18

$5,764.18

Apr. 1, 2010

$3,011.02

$256.01

$10.12

$2,765.14

$5,764.18

$256.01

$13.58

$5,521.75

May 1, 2010

$2,765.14

$256.01

$9.22

$2,518.35

$5,521.75

$256.01

$12.99

$5,278.73

June 1, 2010

$2,518.35

$256.01

$8.31

$2,270.65

$5,278.73

$3,016.01¹

$5.58

$2,268.30

July 1, 2010

$2,270.65

$256.01

$7.40

$2,022.04

$2,268.30

$256.01

$4.98

$2,017.25

Aug. 1, 2010

$2,022.04

$256.01

$6.49

$1,772.52

$2,017.25

$256.01

$4.34

$1,765.85

Sept. 1, 2010

$1,772.52

$256.01

$5.57

$1,522.08

$1,765.58

$256.01

$3.72

$1,513.29

Oct. 1, 2010

$1,522.08

$256.01

$4.65

$1,270.72

$1,513.29

$256.01

$3.10

$1,260.38

Nov. 1, 2010

$1,270.72

$256.01

$3.73

$1,018.44

$1,260.38

$256.01

$2.48

$1,006.85

Dec. 1, 2010

$1,018.44

$256.01

$2.80

$765.23

$1,006.85

$256.01

$1.85

$752.69

Jan. 1, 2011

$765.23

$256.01

$1.87

$511.09

$752.69

$256.01

$1.22

$497.90

Feb. 1, 2011

$511.09

$256.01

$0.94

$256.01

$497.90

$256.01

$0.60

$242.48

Mar. 1, 2011

$256.01

$256.01

$0

$0

$242.48

$252.48

$0

$0

Total :

$72.14

$68.61

Assumptions

Tax Refund Not Used

Tax Refund Used to Pay Off Line of Credit

Loan


Interest rate*


Tax savings

$3,000


4.5%¹



$1,440³

$5,750


3.00%²



$2,760³

¹

Current rate applicable on a loan of less than $5,000. Amortization period of 12 months.

²

Current rate applicable on a loan of $5,000 or more. Amortization period of 12 months.

³

Based on a marginal tax rate of 48% that can vary according to your financial situation.

⁴

Based on an annualized return of 6%.
* The interest rate is subject to change without notice. The repayment period may vary based on changes in the Royal Bank of Canada's prime lending rate. Payments will remain fixed for better budget planning.