Problem
Pat Maninen earns a gross salary of $4,900 each week. Assume a rate of 6.2% on $110,100 for Social Security and 1.45% for Medicare.
a. What are Pat's first week's deductions for Social Security and Medicare? (Round your answers to the nearest cent.)
b. Will any of Pat's wages be exempt from Social Security and Medicare for the calendar year?
c. Max Wholesaler borrowed $13,500 on a 11%, 120-day note. After 45 days, Max paid $4,725 on the note. Thirty days later, Max paid an additional $4,050. Use ordinary interest.
Determine the ending balance and total interest due use the U.S. Rule.