It is estimated that you will pay about $80,000 into the social security system (FICA) over your
Question:
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,...
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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