Maynard Manufacturing Has a Two-Week Payroll of $8,200 for Its

question 53

Multiple Choice

Maynard Manufacturing has a two-week payroll of $8,200 for its eight employees.Income tax of $1,080 is deducted from the employees' cheques, as well as 5% for CPP and 2% for EI.Wages deposited in employees' bank accounts would be:

• A)$6,546
• B)$7,120
• C)$7,626
• D)$8,200

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used to monitor inflation.

Compound Annual Real Rate of Return

The rate of return on an investment, adjusted for inflation, that compounds annually, reflecting the true purchasing power of earnings.

Annual Rate of Inflation

The percentage increase in the price of goods and services over a one-year period, indicating the rate at which the purchasing power of money is eroded.

Compounded Quarterly

The process of adding interest to the principal amount of an investment or loan on a quarterly basis, leading to interest on interest.