Shawn, a married 29 year old, deferred 10% of his salary, or $10,000, into a 401(k) plan sponsored by his employer this year. his wife was unemployed all year and did not receive unemployment compensation. assuming shawn has no other income, what is the maximum contribution shawn’s wife can make to her roth ira for 2016?
a) $0.
b) $1,000.
c) $5,500.
d) $6,500.

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.