4. Jesse can choose between getting $900 every month from Social Security for th

Question

4. Jesse can choose between getting $900 every month from Social Security for the rest of his life starting when he turns 62 or getting $1200 every month for the rest of his life when he turns 67. If he lives to be 75, how much total will he have received in Social Security payments if he retires at age 62? Repeat the question for age 67?

5. Jesse can choose between getting $900 every month from Social Security for the rest of his life starting when he turns 62 or getting $1200 every month for the rest of his life when he turns 67. If he lives to be 90, how much total will he have received in Social Security payments if he retires at age 62? Repeat the question for age 67?

6. Use the results of problems 4 and 5 above to think about what age is best to retire and write a paragraph explaining the wisdom gleaned from comparing the cases. You may also include other factors in your discussion but concentrate on the payments.

Explanation / Answer

4. Jesse have received in Social Security payments from 62 to 67 = $900 every month

then total recived till 67 = $900*(5*12) = $900*60 = $54000

and when he turns 67, he received in Social Security payments $1200 every month till 75

then total recived till 75 = $1200*(9*12) = $1200*108 = $129600

then total received in Social Security payments = $54000 + $129600 = $183600

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