The question below is designed to help you understand the crisis facing Social S

ID: 1216920 • Letter: T

Question

The question below is designed to help you understand the crisis facing Social Security and

Medicare. In 2010, the balance in the Social Security Trust Fund is $1,000. Thereafter, the amount

in the fund changes as a result of contributions and withdrawals. Each dollar in contributions adds

one dollar to the balance and each dollar in benefits deducts one dollar from the balance. Thus the

balance in 2011 is $1,300=$1,000+$500-$200. Fill in the remainder of the column labeled

BALANCE

a. In what year does the balance reach its peak?

_________________

b. In what year does the trust fund enter bankruptcy?

________________

Year Balance

2011 1300

2012 1400

2013 1300

2014 1000

2015 500

2016 -200

2017 -1100

Balance reach its peak in 2014 and trust enter bankruptcy in 2016 as balance become in minus.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.