Finance Weekly Quiz 4/3/2020

Lalah has received similar job offers from two companies. Her plan is to stay with the job she chooses until she reaches retirement age, which will be in 25 years. Company A offers a defined benefit plan where the average monthly pension payment for her position is $630 after 25 years of service. Company B offers a combined defined contribution plan where she can contribute to a 401(k) and an IRA with a monthly maximum contribution of $500.

Write an equation for Company A’s average monthly payments.

• $x\ +\ y\ \le500$

• $y\ =\ 25x$

• $y\ =\ 630x$

• $x\ +\ y\ \ge\ 630$

Lalah has received similar job offers from two companies. Her plan is to stay with the job she chooses until she reaches retirement age, which will be in 25 years. Company A offers a defined benefit plan where the average monthly pension payment for her position is $630 after 25 years of service. Company B offers a combined defined contribution plan where she can contribute to a 401(k) and an IRA with a monthly maximum contribution of $500.

Write an inequality that shows the various combinations of monthly contributins for B’s plan.

• $y\ =\ 630x$

• $x\ +\ y\ \le500$

• $x\ +\ y\ <500$

• $x\ -\ y\ \le500$

What type of boundary line would the following inequality have?
 $3x\ +\ 7y\ <\ 720$  

• solid

• dashed

What type of boundary line would the following inequality have?
 $y\ge4x\ -\ 2$  

• solid

• dashed

How do you know which side of the boundary line to shade when graphing an inequality?

What is the maximum amount that an individual will contribute to Social Security in one year?

If a person chooses to retire and collect benefits at age 62, how much of a discount will they receive in their Social Security benefits?

• 12.4%

• 8%

• 30%

• 6.2%

What is the current age that someone can retire and collect full retirement benefits, if they were born after 1960?

Nigel earns $72,000 a year at the time of his retirement at 66 years of age. His Social Security benefits are $2,275 a month. Nigel also had a pension plan from his employer. How much would the pension plan’s monthly payment have to be to assure Nigel being able to retire at 80% of his retirement income?

• $3725.00

• $2525.00

• $6000.00

• $4800.00

Georgina is making a biweekly contribution of 5% towards her Roth IRA as well as her 6.2% contribution to Social Security. Georgina is on track to earn $44,550 this year, how much will she contribute to her retirement accounts this year?

• $2227.50

• $4989.60

• $2762.10