Quiz no. 2 (Tax,bank statement,simple interest)

What is the primary purpose of reconciling a bank statement?

• To calculate interest earned

• To ensure the bank's records match your own

• To apply for a loan

• To determine credit score

Which of the following is a common bank statement adjustment?

• Adding outstanding checks

• Subtracting outstanding deposits

• Adding bank fees

• Subtracting interest earned

• $450

• $500

• $550

• $600

What is the current Medicare tax rate for employees?

• 1.45%

• 2.9%

• 6.2%

• 7.65%

What is the Social Security tax for an employee earning $50,000 annually in 2023 (6.2%)? (enter your answer without space in this format "$1,234.56" )

(a)  

What is the maximum taxable income for Social Security tax in 2023? (enter your answer without space in this format "$1,234.56" )

(a)  

Which formula represents simple interest?

If you invest $1,000 at a simple interest rate of 5% for 3 years, what is the interest earned? (enter your answer without space in this format "$1,234.56" )

(a)  

What is the maturity value of $21,400.00 certificate of deposit that is paid a 0.21% interest after 5 years? (enter your answer without space in this format "$1,234.56" )

(a)  

How does an increase in the interest rate affect the simple interest earned?

• Decreases the interest

• Increases the interest

• No effect

• Doubles the interest