It is estimated that you will pay about $80,000 into the social security system (FICA) over your 40 year work span For simplicity, assume this is an annuity of $2,000 per year, starting with your 26th birthday and continuing through your 65th birthday a What is the future equivalent worth of your s...

It is estimated that you will pay about $80,000 into the social security system (FICA) over your

Question:

It is estimated that you will pay about $80,000 into the social security system (FICA) over your 40-year work span. For simplicity, assume this is an of $2,000 per year, starting with your 26th birthday and continuing through your 65th birthday.
a. What is the future equivalent worth of your social security savings when you retire at age 65 if the government's interest rate is 6% per year?
b. What annual withdrawal can you make if you expect to live 20 years in retirement? Let i = 6% per year.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...