Question

Daniel earns $114,312 annually and is paid monthly. How much social security tax will be deducted from his December earning? How much Medicare tax will be deducted from his December earnings? Assume a 4.2% FICA rate and a 1.45% Medicare rate. Round to the nearest cent.

A.) Social Security tax= $2231.90 Medicare tax= $1381.27

B.) Social Security tax= $223.19 Medicare tax= $138.13

C.) Social Security tax= $224.19 Medicare tax= $139.13

D.) Social Security tax= $22.32 Medicare tax=$13.81

2.) Find the interest paid on a loan of $3946 for 5 months at a simple interest rate of 12% per year.

A.) $236.76 B.) $198.96 C.) $197.30 D.) $157.84

3.)You need to borrow $1500 to cover your school expenses for 10 months. After calling several places, you can choose between money store charging 15% simple interest per year or your family who will charge you 10% per year. How much will you save by borrowing from your family?

A.) $150.00 B.) $750.00 C.) $312.50 D.) $62.50

Answer 1

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