Sally quit her job as an auto mechanic earning $50,000 per year to start her own business. To save money she operates her

business out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year.

She also invested her $20,000 savings (which earned a market interest rate of 5% per year) in her business. You are given the

following information about the first year of her operations.