Which Fact Would Suggest to a Family That They May

question 1

Multiple Choice

Which fact would suggest to a family that they may want to check building codes and availability of insurance and reconsider the location of their next home?

• A)The area where they are looking had a huge neighborhood fire after a lightning strike last year,and people are just starting to rebuild.
• B)The building lot is beautiful but in an area that has had forest fires and all the houses have burned three times in the past 20 years.
• C)The empty building lot was in a neighborhood of very nice homes,but the home that used to be there was burned when the smoker fell asleep in his bed.
• D)The home is very historic with features that cannot be replicated at any price today,but the damage from the fireplace fire is still very visible in the main living area.

---

Definitions:

Perpetuity

A financial instrument that provides a stream of infinite cash flows or payments.

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest of previous periods, done monthly.

RRSP

Registered Retirement Savings Plan, a tax-deferred savings account in Canada that allows individuals to save for retirement while potentially reducing their taxable income.

RRIF

Registered Retirement Income Fund, a tax-deferred retirement plan in Canada that an individual can use to generate income from the assets inside their Registered Retirement Savings Plan.