Zoe's gross income is $16,960. His medical expenses for the year
amounted to $812.35. If he can deduct only the amount over 7 1/2% of
his gross income for medical expenses, how much can he deduct for
medical expenses?
2)Lola has a two-year lease that requires her to pay $295 rent per month.
What is the total amount she will pay for rent during the term of her
lease?
1) Subtract 7 1/2% of G.I. from 812.35. That will be the deductible abount.
2) Two years is 24 months. Multiply that by the monthly payment to get the total rent payment during the lease.
To calculate the deduction for medical expenses, we need to find the amount over 7 1/2% of Zoe's gross income. Here's how you can do it:
1. Calculate 7 1/2% of Zoe's gross income:
- Convert 7 1/2% to decimal form: 7.5 / 100 = 0.075
- Multiply Zoe's gross income by 0.075: $16,960 * 0.075 = $1,272.00
2. Find the amount over 7 1/2% of Zoe's gross income by subtracting the medical expenses from the calculated amount:
- Amount over 7 1/2% = $812.35 - $1,272.00 = -$459.65
Since the amount over 7 1/2% is negative, it means Zoe cannot deduct any amount for medical expenses.
Now, let's move on to the second question:
To calculate the total amount Lola will pay for rent during the term of her lease, we need to multiply her monthly rent by the duration of the lease. Here's how you can do it:
1. Determine the duration of Lola's lease. If it's a two-year lease, the duration in months would be:
- 2 years * 12 months/year = 24 months
2. Multiply Lola's monthly rent by the duration of the lease:
- Total rent = $295 * 24 = $7,080
Therefore, Lola will pay a total of $7,080 for rent during the term of her lease.