Match the Following Terms with Their Definitions

question 97

Multiple Choice

Match the following terms with their definitions.
-Gross pay

• A)May be used in calculating Social Security and Medicare
• B)Pay rate based on schedule of units completed
• C)Income tax
• D)Minimum wage standard
• E)Alternative method to percentage method
• F)52 times a year
• G)Aids in determining amount of FIT withheld
• H)26 times a year
• I)Method to calculate FIT
• J)24 times a year
• K)Different levels result in different commission scales
• L)Wages subject to tax
• M)Commission to manager
• N)Broken down into Social Security and Medicare
• O)Wages before deductions
• P)Gross pay minus deductions
• Q)Aids unemployment program
• R)Wages based on percent of the value of goods sold
• S)Affected by company's employment record

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Definitions:

Monthly Payments

Regular payments made on a monthly basis towards settling a financial obligation, such as a loan or mortgage.

Effective Annual Rate

The effective annual rate is the interest rate on a financial product restated from the nominal rate as an annual rate that takes into account compounding over a given period.

Nominal Annual Rate

The interest rate stated on a loan or financial product, not accounting for compounding or inflation over time.

Interest Payments

Periodic payments made to lenders or bondholders as compensation for lending their money.