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BigorU [14]
3 years ago
13

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is $50,760. Assumin

g that he will recieve 42% of his average annual salary, what will be his annual Social Secrity benefit?
Mathematics
1 answer:
Andre45 [30]3 years ago
7 0
Use the formula of the present value of annuity ordinary which is
Pv=pmt [(1-(1+r)^(-n))÷r]
Pv present value 50760
PMT annual Social Secrity benefit ?
R average annual salary0.42
N time 35 years
We need to solve for pmt
PMT=Pv÷[(1-(1+r)^(-n))÷r]
PMT=50,760÷((1−(1+0.42)^(−35))÷(0.42)) =21,319.20
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