If the Future Value Annuity Factor at 10% and 5

question 55

Multiple Choice

If the future value annuity factor at 10% and 5 years is 6.1051, calculate the equivalent present value annuity factor

• A) 6.1051
• B) 3.7908
• C) 6.7156
• D) None of the given ones

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Definitions:

Medical Expense Deduction

A tax deduction allowed for unreimbursed medical expenses that exceed a certain percentage of the taxpayer's adjusted gross income.

Dependent

Dependent is a person, typically a child or elderly family member, whose support and maintenance are provided by another, qualifying the supporting individual for certain tax benefits.

Pease Limitations

Named after Congressman Don Pease, these are limits on the amount of itemized deductions that high-income individuals can claim.

Itemized Deductions

Expenses allowed by the IRS that can be deducted from adjusted gross income to reduce taxable income if chosen instead of the standard deduction.