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Mr. Bernard paid $4,794 in social security tax on earnings of $68,000 one year. What was the social security tax rate for that year to the nearest hundredth of a percent)?6.85%7.05%7.15%7.65%None of these choices are correct.

Mr. Bernard paid $4,794 in social security tax on earnings of $68,000 one year. What-example-1
User Suad
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1 Answer

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20 votes

Answer:

7.05%

Step-by-step explanation:

Mr Bernard taxable income = $68,000

Amount paid as social security tax on earnings = $4,794

Let the social security tax rate = x

This gives:


(x)/(100)*68,000=4,794

Next, solve for x:


\begin{gathered} 680x=4794 \\ x=(4794)/(680) \\ x=7.05 \end{gathered}

The social security tax rate for that year (to the nearest hundredth of a percent) is 7.05%.

User Gopal Sharma
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