Question

Henry is up for retirement after 35 long years at his pharmacy. Before retiring, he would like to know how much he would receive each month from Social Security if he were to retire. During his 35 years, Henry averaged an annual salary of $45,620. Assuming he would recieve 42% of his annual average each year, how much can Henry expect to receive from Social Security on a monthly basis?

Answer 1

0.42 x 45620 = 19160.40

$19160.40 / 12 = $1596.70 a month

Answer 2

To find how much Henry can expect to receive from Social Security on a monthly basis, we first need to find how much he cant expect to receive from social security per year.

We know form our problem that Henry averaged an annual salary of $45,620, so to find how much can Henry expect to receive from Social Security per year, we just need to find the 42% of $45,620.

To find the 42% of $45,620, we are going to convert 42% to a decimal by dividing it by 100%, and then we are going to multiply the resulting decimal by $45,620:

$\frac{42}{100} =0.42$

Social security annual payment = (0.42)($45,620) = $19,160.40

Since there are 12 month in a year, we just need to divided the social security annual payment by 12 to find how much he can expect to receive each month.

Social security monthly payment = $\frac{19,160.40}{12}$ = $1.596.70

We can conclude that Henry can expect to receive $1.596.70 monthly from Social Security.