Eric's Gross Pay for the Week Is $2,150

question 20

Multiple Choice

Eric's gross pay for the week is $2,150.His deduction for federal income tax is based on a rate of 25%.He has no voluntary deductions.His yearly pay is under the limit for OASDI.What is the amount of FICA tax that will be withheld from Eric's pay? (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. )

• A)$537.50
• B)$164.48
• C)$701.98
• D)$136.50

---

Definitions:

NAV

NAV, or Net Asset Value, is the per-share value of a mutual fund or an exchange-traded fund (ETF), calculated by dividing the total value of all the securities in the portfolio, minus any liabilities, by the number of shares outstanding.

Mutual Fund

A financial instrument that pools money from various investors to invest in different types of securities, including stocks, bonds, money market instruments, and additional assets.

New York Time

The time zone observed in New York, typically Eastern Standard Time (EST) or Eastern Daylight Time (EDT), depending on the time of year.

SEC

The Securities and Exchange Commission, a U.S. regulatory agency responsible for enforcing federal securities laws and regulating the securities industry.