Unit 7: Retirement Final Exam Review

Samuel is 30 years old. He plans to retire when he is 67. He has opened a traditional retirement account that pays 3% interest compounded monthly. If he makes monthly deposits of $350, how much will he have in the account by the time he retires?

• $211,282.93

• $1,160,031.67

• $365,428.46

• $243,786.67

How much of your salary do experts recommend you set aside for retirement?

• 5-10%

• 10-15%

• 20-25%

• 25-30%

Tags

CCSS.6.RP.A.3C

A source of income provided by the federal government when you retire, primarily based on your total earnings throughout your career and your age when you start receiving benefit payments, is called:

• social security

• retirement planning

• a 401(k)

• asset allocation

Tyler has worked for Surgical Medical Tools for 20 years. His employer offers a pension benefits package with a flat benefit formula using the flat amount of $40 for each year of service. What will be his monthly payment?

• $80

• $800

• $400

• $300

• $700

Tags

CCSS.6.EE.B.6

Harry is retiring after working for 27 years at Fifth Street Bank. The bank offers him a flat monthly retirement benefit of $55 for each year of service. What will his monthly pension be?

• $1,400

• $1,100

• $1,485

• $1,480

Tags

CCSS.6.EE.B.6

Mr. Johnson worked for 35 years at his local machine company. His company offers 1.75% of the average of the last 5 year's salaries for each year worked. His previous five-years salaries were: $44,000, $46,000, $47,000, $53,000, and $58,000. Calculate his annual pension.

• $30,380

• $303,800

• $50,633

• $151,900

Tags

CCSS.HSF.BF.A.2

Mr. Johnson worked for 35 years at his local machine company. His company offers 1.75% of the average of the last 5 year's salaries for each year worked. His previous five-years salaries were: $44,000, $46,000, $47,000, $53,000, and $58,000. Calculate his monthly pension.

• $2,531.67

• $25,316.67

• $868.00

• $4,219.44

Tags

CCSS.HSF.BF.A.2

Madison is opened a retirement account through her employer. The retirement has an annual rate of 2.5%. She is planning on retiring in 30 years. How much must she deposit into that account each MONTH so that she can have a total of $750,000 by the time she retires?

• $1,400.90

• $1,500.25
• $2,000.75
• $1,200.50

Bradley recently switched jobs during the year. He earned $73,640 working at a software company for the first 6 months. He changed jobs in July and began working for a start-up tech company, earning $65,500. If the Social Security tax limit is $7,560.
How much Social Security tax refund will Bradley receive?

• $1,066.68

• $8,626.68

• $89.28

• $2,994.32

Tags

CCSS.6.RP.A.3D

Mitch opened a retirement account that has an annual yield of 2.2% compounded monthly. He is planning on retiring in 13 years. How much must he deposit into that account each month so that he can have a total of $1,000,000 by the time he retires? (Round to the nearest whole number)

• $751,459

• $543

• $5,543

• $1,145