Answer:
- <em><u>The reduction is 8.6%</u></em>
Explanation:
Call F the full monthly pension of a person retiring at 62.
If a person continues to work the pension grows at a rate of 6% per year, compounded monthly, so use the compounded growing formula:
Where r = 6 / 100 = 0.06, and t = number of years after retirement.
<u>For retirement at 65.5</u>:
<u>For retirement at 67</u>:
<u>Percent reduction of people who retire at 65.5 compared to what they would receive at 67</u>:
X-y=3=>x=3+y
X+2y=-6
=========
3+y+2y=-6
3+3y=-6
3y=-6-3
3y=-9
y=-3
X+2y=-6
X+2(-3)=-6
X-6=-6
X=0
0.63x12= 7.5 so the answer is 7.5
7x+8x+44.4=180
15x=44.4=180
15x=135.6
x=9.04°
so 8x=72.32° and the 7x is 63.28°