Question 7 • Financial Math - MA2007
Medicare tax is 1.45% of wages, so multiply each wage by 0.0145. The results are $23,660 × 0.0145 = $343.07, $89,000 × 0.0145 = $1,290.50, and $166,090 × 0.0145 = $2,408.305, which rounds to $2,408.31. These amounts match choice a.
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