CH3.7. Future Value of Annuity. Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a "nest egg" to start her off. Michelle works out her budget and decides she can afford to set aside $160 per month for savings. Her bank will pay her 12% annually on her savings account. What will Michelle's balance be in 2 years?

CH4.2 Deductions. Helga and Staffan are married and file a joint return. The standard deduction for their filing status is $7,900. They have the following itemized deductions:

Medical Bills that exceeded the 7.5% limit $3,000

Interest expense $4,500

State income taxes $2,500

Miscellaneous deductions $ 550

Should Helga and Staffan itemize their deductions or use the standard deduction?

CH4.3. Itemized Deduction.Emma's adjusted gross income is $30,000. She has $2,200 in unreimbursed medical expenses. How much in medical expenses can Emma claim as an itemized deduction?

CH4.4. Impact on Taxes. Jacques has a marginal tax rate of 15%. He suddenly realizes that he neglected to include a $2,000 tax deduction. How will this oversight affect his taxes?