42 years ago the maximum earnings of a worker subject to Social Security tax (SST) was $11,000. The maximum earnings subject to SST now is $117,200. What compound annual increase has been experienced over this 42-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period of time? The compound annual increase in SST over 42 years is %. (Round to two decimal places.) The increase in SST over 42 years is the 3% annual increase in the consumer price index.
42 years ago the maximum earnings of a worker subject to Social Security tax (SST) was $11,000. The maximum earnings subject to SST now is $117,200. What compound annual increase has been experienced over this 42-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period of time? The compound annual increase in SST over 42 years is %. (Round to two decimal places.) The increase in SST over 42 years is the 3% annual increase in the consumer price index.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![42 years ago the maximum earnings of a worker subject to Social Security tax (SST) was $11,000. The maximum earnings subject to SST now is $117,200. What compound
annual increase has been experienced over this 42-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period
of time?
The compound annual increase in SST over 42 years is %. (Round to two decimal places.)
The increase in SST over 42 years is
the 3% annual increase in the consumer price index.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92dd192b-2b85-4e23-91c3-a8e23aec13bb%2F1b85d73b-5bb7-4ba2-ac0c-1f7e05805fd6%2F82utdyk.jpeg&w=3840&q=75)
Transcribed Image Text:42 years ago the maximum earnings of a worker subject to Social Security tax (SST) was $11,000. The maximum earnings subject to SST now is $117,200. What compound
annual increase has been experienced over this 42-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period
of time?
The compound annual increase in SST over 42 years is %. (Round to two decimal places.)
The increase in SST over 42 years is
the 3% annual increase in the consumer price index.
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