Problem:
Question 1: The future value of $1,000 deposited a year for 5 years earning 4 percent would be approximately
A. $5,000
B. $5,250
C. $5,400
D. $6,500
E. $8,200
Question 2: A person who pays $4,500 in real estate property taxes and is in the 30 percent tax bracket, would reduce the amount paid for federal income taxes by
A. $4,500
B. $3,240
C. $1,485
D. $1,260
E. $1,350
Please explain in detail.