Question 19 • FL-2102373-Personal Finance and Money Management Honors
One possible solution to a diminishing Social Security payroll is to decrease the Social Security benefit by 13%. How would such a decrease effect the benefits on a salary of $54,000?
Answer
A
Benefit would decrease by $1,404 annually.
B
Benefit would decrease by $7,020 annually.
C
Benefit would decrease by $8,640 annually.
D
Benefit would decrease by $15,660 annually.
Explanation
Find 13% of the $54,000 salary: 0.13 × $54,000 = $7,020. So the benefit would decrease by $7,020 annually, which is choice B.
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