Kathy Is 48 Years of Age and Self-Employed

question 17

Multiple Choice

Kathy is 48 years of age and self-employed. During 2017, she reported $100,000 of revenues and $40,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k) for 2017? (Round your final answer to the nearest whole number)

• A) $17,152.
• B) $29,152.
• C) $54,000.
• D) $11,152.

---

Definitions:

Median

A measure of central location provided by the value in the middle when the data are arranged in ascending order.

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely.

Probability Density Function

An equation that indicates the probability of a random variable occurring at a certain value.

Interval

In mathematics, this refers to a range of numbers between two defined points, which can be either open or closed at each end.