Jim Is Self Employed and Had a "Banner" Year in 2015,earning

question 19

Multiple Choice

Jim is self employed and had a "banner" year in 2015,earning $350,000 net income.He wanted to make a significant contribution to his retirement planning and set up a SEP plan.Since the plan allows for contributions up to 25% of net income,his maximum contribution was

• A) $53,000.
• B) $87,500.
• C) $75,000.
• D) $63,000.

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Definitions:

Community College

A type of educational institution that provides higher education and lower-level tertiary education, granting certificates, diplomas, and associate degrees.

Student Organizations

Groups formed within educational institutions by students aiming to facilitate social, educational, professional, or cultural objectives.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Hypergeometric Random Variable

A type of random variable that describes the number of successes in a sequence of n draws from a finite population without replacement.