Assume your other itemized deductions exceed the standard deduction amount. On December 30, you decide to make a $2,500 charitable donation.

a.	If you are in the 27 percent tax bracket, how much will you save in taxes for the current year?

Tax savings

$

b.	If you deposit that tax savings in a savings account for the next four years at 6 percent, what will be the future value of that account? Use Exhibit 1-A. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

Future value

$