1. **State the problem:** Martina's wages before deduction are $68,000. She contributed $2,700 to a flexible savings plan (FSA), which reduces her taxable income. Her federal tax rate is 25%. We need to find how much she saved in federal taxes by using the FSA. 2. **Formula and explanation:** The tax savings from the FSA contribution is calculated by multiplying the contribution amount by the tax rate. $$\text{Tax Savings} = \text{Contribution} \times \text{Tax Rate}$$ 3. **Calculate the tax savings:** $$\text{Tax Savings} = 2700 \times 0.25$$ 4. **Perform the multiplication:** $$\text{Tax Savings} = 675$$ 5. **Interpretation:** Martina saved $675 in federal taxes by contributing $2,700 to the FSA. **Final answer:** $675