1. Trudy is Jocelyn's friend. Trudy looks after Jocelyn's four-year-old son during the day so Jocelyn can go to work. During the year, Jocelyn paid Trudy $4,120 to care for her son. What is the amount of Jocelyn's child and dependent care credit if her AGI for the year was $31,200? (Exhibit 8-9)

2. If you bought a share of mutual funds at a NAV equal to $16.80 and within the year you sold it for $16.50, while you also made $1.50 per share from income & capital gain distributions, how much is your return on the fund?

3. You bought one of Great White Shark Repellant Co.’s 9 percent coupon bonds one year ago for $800. These bonds make annual payments and mature 8 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 12 percent. If the inflation rate was 3.1 percent over the past year, what was your total real return on investment?