Question

The Social Security (FICA) wage base ,y, (in thousands of dollars) from 1983 to 1988 is given by the equation y=1.9x+34.1, where x is the number of years since 1983. What was the FICA wage base in 1995? (A) $48,200 (B) $53,100 (C) $56,900 (D) $58,800

Answer 1

C. $56,900

Explanation:

Given the equation of the Social Security (FICA) wage base y, (in thousands of dollars) from 1983 to 1988 expressed as y=1.9x+34.1

for us to calculate his wage base in 1995, we need to calculate the total number of years between 1983 to 1995 i.e 12 years

Substitute x = 12 into the expression above as shown;

y=1.9x+34.1

y = 1.9(12)+ 34.1

y = 22.8 + 34.1

y = 56.9

Since y is in thousand of dollars then

y = 56.9 * 1000

y = 56900

y = $56,900

Hence FICA wage base in 1995 is $56,900