In January of this year, Herman established an RESP for his daughter Veronica and contributed $4,000. If Herman's net family income exceeds $100,000, how much Canada Education Savings Grant will be paid into the RESP?

When it comes to the Canada Education Savings Grant (CESG), the amount contributed to the Registered Education Savings Plan (RESP) is matched by the government, with specific limits and conditions based on the family net income.

For the first $2,500 contributed to an RESP in a calendar year, the government provides a 20% grant, amounting to a maximum of $500 (20% of $2,500). Since Herman contributed $4,000 in this year, he qualifies for this maximum grant for the first $2,500 contribution, receiving $500. On the remaining $1,500 of his contribution, because his net family income exceeds $100,000, the match on this portion reduces to 10%, providing an additional $150 (10% of $1,500).

Adding both amounts together gives a total grant of $500 + $150 = $650. However, it's important to note that the CESG has specific limits, and for families with income over $100,000, the total CESG lifetime limit one can receive is capped at $7,200.

Thus, in this scenario, the correct total grant that will be paid into the RESP amounts to $650. However, since the question and