How much will Dora receive as Canada Education Savings Grant (CESG) for her RESP contribution?

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In determining the amount Dora will receive as a Canada Education Savings Grant (CESG) for her Registered Education Savings Plan (RESP) contribution, it's essential to understand how the CESG operates. The CESG provides a grant to encourage saving for students’ post-secondary education. The grant is based on contributions made to an RESP, with the government matching a percentage of those contributions up to specific limits.

The CESG offers a 20% match on the first $2,500 contributed to an RESP each year. This means that for every dollar Dora contributes, the government adds 20 cents, up to a maximum of $500 per year. If Dora contributed $2,500 within a given year, she would receive the full amount of $500 as a grant.

To further illustrate, if she contributed less than $2,500, the total grant would correspondingly decrease based on the same 20% rate. For example, if her contribution had been $1,250, she would receive $250 as the grant.

Given that she receives $500 in this scenario, it indicates that Dora has maximized the CESG for her contribution amount, clearly aligning with the program's structure. This context helps clarify why the answer indicates she received a grant

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