In the United States, if you have worked long enough, you can receive Social Security, a monthly payment based on your earnings, and how old you are. Here is a typical

payment schedule. For your calculations, use a interest rate of $3\mathrm{.}5\%.$ Calculate the Future value and present value.

Age $62$ $$1,400$ per month $$16,800$ per year

Age $66$ $$1,700$ per month $$20,400$ per year

Age $70$ $$2,000$ per month $$24,000$ per year

a$.$ If your life expectency is expected to be $85,$ which is the better age to start taking Social Security.

b$.$ If your life expectency is expected to be $90,$ which is the better age to start taking Social Security.

c$.$ If your life expectency is expected to be $95,$ which is the better age to start taking Social Security.

Hint: how many years will be in the PV and FV calculation for each age and question. Make a grid and use formulas.

Years to retire Rate Amount Future Value Present Value

Part a

Part b

part c