Final answer:
B) pay $240 less in taxes.
Jake will pay $240 less in taxes due to his $800 investment in an RRSP and his 30 percent marginal tax bracket. The tax saving is calculated by multiplying the investment by the tax rate.
Step-by-step explanation:
If Jake invested $800 in an RRSP (Registered Retirement Savings Plan), and he is in the 30 percent marginal tax bracket, then the amount of tax he will save is calculated as a percentage of his contribution. To calculate this, you multiply the amount invested by the tax rate:
$800 × 0.30 = $240
Therefore, Jake will pay $240 less in taxes. This means that the correct answer is (B) pay $240 less in taxes. Investments in RRSPs are tax-deductible up to a certain limit, which essentially reduces the amount of income tax an individual owes by the amount of the contribution times their tax rate, but it does not result in a tax credit or a different sized deduction than the percentage of the individual's marginal tax rate.