The Principal Amount and the Interest Rate Are the Only

question 40

True/False

The principal amount and the interest rate are the only factors needed to calculate the time value of money.

---

Definitions:

FICA Taxes

Taxes collected in the United States to fund Social Security and Medicare, typically deducted from employees' paychecks.

Taxable Income

The portion of an individual's or corporation's income used as the basis for calculating how much tax is owed.

Social Security Tax

A tax that finances the Social Security program, providing benefits for retirees, the disabled, and survivors of deceased workers.

Medicare Tax

Medicare Tax is a federal tax that funds the Medicare program, typically deducted from an employee's paycheck to provide healthcare benefits to individuals aged 65 and older.