Question

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.

Answer 1

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%.