Suppose You Put $100 into a Savings Account Today, the Account

question 11

Multiple Choice

Suppose you put $100 into a savings account today, the account pays a simple annual interest rate of 6 percent, but compounded semiannually, and you withdraw $100 after 6 months.What would your ending balance be 20 years afte initial $100 deposit was made?

• A)$226.20
• B)$115.35
• C)$62.91
• D)$9.50
• E)$3.00

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Definitions:

Payroll Tax Deposits

Amounts employers set aside and send to tax authorities to cover their obligations for employee payroll taxes.

FUTA Tax

A national levy charged to employers to finance state employment services and joblessness benefits.

Self-Employment Taxes

Taxes that self-employed individuals pay, covering Social Security and Medicare taxes, based on their net earnings.

Net Earnings

The amount of income left over after all deductions, including taxes, expenses, and allowances, have been subtracted from gross earnings.