The Social Security (FICA) Wage Base (In Thousands of Dollars)

question 71

Multiple Choice

The Social Security (FICA) wage base (in thousands of dollars) from 1996 to 2001 is given in the following table: Find an equation of the least-squares line for these data. (Let x = 1 represent the year 1996.) Please round the coefficients in your equation to three decimal places. Use the result to estimate the FICA wage base in the year 2007.

• A) y = 3.587x + 58.368; $101,412
• B) y = 3.587x + 58.368; $101,306
• C) y = 3.574x + 58.440; $101,553
• D) y = 3.574x + 58.440; $101,328

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Definitions:

Specific Assets

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Maturity Date

The Maturity Date is the specific date on which a financial obligation must be paid off or when an investment becomes due for repayment.

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The total amount of interest paid by a borrower to a lender over a particular period for the use of borrowed money.