Ann Realized a Total Return of 15

question 73

Multiple Choice

Ann realized a total return of 15.3%, which is more than her expected return of 12.0%. What is the amount of her unexpected return?

• A)−3.3%
• B)−.6%
• C).7%
• D)1.3%
• E)3.3%

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Definitions:

Wage Base Limit

Wage base limit refers to the maximum income on which an individual is required to pay Social Security taxes in a given year.

FICA-Medicare

A component of FICA taxes, withheld from employee wages and matched by employers, to fund the Medicare health insurance program.

FICA-OASDI

Tax contributions made by both employees and employers to fund the Social Security program, covering retirement, disability, and survivorship benefits under the Federal Insurance Contributions Act.

FICA Tax Rate

The combined rate for Social Security and Medicare taxes that employers and employees must pay on wages.