Question

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?
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

Answer 1

b. 13% of $54,000 = 0.13 × $54,000 = $7,020, so benefits would decrease by $7,020 annually.