Feng,a Single 40 Year Old Lawyer,is Covered by a Qualified

question 49

Multiple Choice

Feng,a single 40 year old lawyer,is covered by a qualified retirement at work.His salary is $110,000,and his total AGI is $126,000.The maximum contribution he can make to a Roth IRA in 2016 is

• A)0)
• B)$3,300.
• C)$2,200.
• D)$5,500.

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Definitions:

Net Present Value

A method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over the investment's lifetime.

Variable Cost

Costs that vary in proportion to the volume of output or activity, such as materials and labor.

Monthly Interest Rate

The percentage of interest charged or earned on a loan or investment over a month.

Invoice Date

The date on which an invoice is generated, marking the beginning of the payment terms period.