Financial Algebra chapter 10 quiz 1

Jay just graduated from college and he has decided to open a retirement account that pays 1.75% interest compounded monthly. If he has direct deposits of $100 per month taken out of his paycheck, how much will he have in the account after 42 years?

• $74356.50

• $121,986.24

• $186,578.65

• $96,548.73

Fiona opened a retirement account that has an annual yield of 6%. She is planning on retiring in 20 years. How much must she deposit into that account each month so that she can have a total of $600,000 by the time she retires?

• $1,298

• $795

• $842

• $955

At the age of 30, Jasmine started a retirement account with $50,000 which compounded interest semi-annually with an APR of 4%. She made no further deposits. What is her balance after 25 years?

• $134,579.40

• $50,000

• $3,584,354.62

• $151,384.92

In 2018, the maximum taxable income for Social Security was 128,700 dollars and the tax rate was 6.2%. What is the maximum Social Security tax anyone could have paid in that year?

• $7,130

• 6,324

• $7,979

• $11,398

In 2018, the maximum taxable income for Social Security was 128,700 dollars and the tax rate was 6.2%. Alex switched jobs in 2018 from the credit union to the hospital. When he worked for the credit union he made $67,010 and the hospital paid him $72,200. Each employer took out 6.2% out for social security taxes. How much did Alex overpay for social security in 2018?

• $8,631

• $7,979

• $652

• $1,130

In 1978, the amount of earnings required to earn one social security credit was $250. thirty years later, in 2018, this amount is $1,320. What was the percent increase in the amount required to earn a credit, over this 40- year span?

• 320%

• 1070%

• 428%

• 372%