Suppose You Land a Job with Google Right Out of College.Your

question 75

Multiple Choice

Suppose you land a job with Google right out of college.Your economics training is very valuable to them,so you receive a starting annual salary of $65,000.What is the total amount of social insurance taxes you will be responsible for after your first year of work?

• A) $9,945.00
• B) $4,030.00
• C) $942.50
• D) $9,750.00
• E) $4,972.50

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Definitions:

Payback Period

The amount of time it takes for an investment to generate enough cash flow to recoup its original cost.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.