Question

If you earned up to $113,700 in 2013 from an employer, your social security tax rate was 6.2% of your income. If

you earned over $113,700, you paid a fixed amount of $7,049.40.
d. What is the meaning of f(150,000)? What is the value of f(150,000)?

Answer 1

f(150,000) shows that if you earn $150,000 than you need to pay $7,049.40 in social security tax.

The value of f(150,000) = $7,049.40

Explanation:

Consider the provided information.

Let us consider you earn x amount

It is given that if x is upto $113,700 you need to pay social security tax rate was 6.2% of your income.

And if the value of x is more than $113,700, you paid a fixed amount of $7,049.40.

Now we need to determine the meaning of f(150,000).

150,000 shows that the value of x or you earn $150,000.

As we know $150,000 is more than $113,700 that mans you need to pay a fixed amount of $7,049.40

Hence, f(150,000) shows that if you earn $150,000 than you need to pay $7,049.40 in social security tax.

The value of f(150,000) = $7,049.40