What compound annual increase has been experienced


Problem

In 1972, the maximum earnings of a worker subject to Social Security tax (SST) was $9,000. The maximum earnings subject to SST in 2012 is $110,100. What compound annual increase has been experienced over this 40-year period of time? How does it compare with a 3% annual increase in the consumer price index over this same period of time?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What compound annual increase has been experienced
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