Question: Earl E. Bird has decided to start receiving his Social Security monthly checks of $3000 as soon as he qualifies (from the first month after

Earl E. Bird has decided to start receiving his Social Security

Earl E. Bird has decided to start receiving his Social Security monthly checks of $3000 as soon as he qualifies (from the first month after his 66th birthday). Ivana Waite, same age as Earl, decided to wait another 4 years, so she could receive the maximum monthly payment of $4000 (from the first month after her 70th birthday). Using the average life of 85, at what nominal rate (compounded monthly) Earl and Ivana are equally good? 2.40% None of them 4.80% 3.60% 6.00% Earl E. Bird has decided to start receiving his Social Security monthly checks of $3000 as soon as he qualifies (from the first month after his 66th birthday). Ivana Waite, same age as Earl, decided to wait another 4 years, so she could receive the maximum monthly payment of $4000 (from the first month after her 70th birthday). Using the average life of 85, at what nominal rate (compounded monthly) Earl and Ivana are equally good? 2.40% None of them 4.80% 3.60% 6.00%

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