December 30, you decide to make a $1,800 charitable donation.

a. If you are in the 20.5 percent federal tax bracket, how much will you save in taxes this year? Assume that amounts in excess of $200 do not exceed 75 percent of Net income. (Omit the "$" sign in your response.)

b. If you deposit that tax savings in a savings account for the next seven years at 9 percent, what is the future value of that account?

Use Exhibit 1B-1. (Round time value factor to 3 decimal places and final answer to 2 decimal places. Omit the "$" sign in your response.)

Future of tax savings

$