Arnold Is Employed as an Assistant Manager in the Furniture

question 91

Essay

Arnold is employed as an assistant manager in the furniture division of a national chain of department stores.He is a recent college graduate with a degree in marketing.During 2012, he enrolls in the evening MBA program of a local university and incurs the following expenses: tuition, $4,200; books and computer supplies, $800; transportation expense to and from the university, $450; and meals while on campus, $400.Arnold is single and his annual AGI is $66,000.As to these expenses, what are Arnold's:

---

Definitions:

Savings Plan

A strategic approach to setting aside a portion of one's income for future use or emergencies.

Compounded Monthly

Interest on an investment or loan is calculated and added to the principal amount on a monthly basis.

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle for individuals to save for retirement on a tax-sheltered basis.

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied once per year.