Question
In: Finance
A family friend is planning her retirement from work in the U.S. She is 62 years...
A family friend is planning her retirement from work in the U.S. She is 62 years old right now (time 0) and has the choice of taking her Social Security (a public pension program) according to the following schedule (first payment noted in parentheses):
I. Early retirement at age 62 (month 0) $1,300 per month for life
II. Regular retirement at age 67 (month 60) $1,800 per month for life
III. Delayed retirement at age 70 (month 96) $2,300 per month for life
If her expected life expectancy is 92 years old (exactly), what are the present values of the choices? (Assume r = 4% (annual))
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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