Advanced Financial Algebra - Test Review Chapter 10

Sarah is 40 years old and works at a large law firm that offers a pension plan. The pension is calculated by multiplying the average of her highest 3 years of salary, her years of service, and a 1.8% multiplier. She plans to retire at age 65 after 25 years of service, and she expects her highest 3 years salary to average $100,000. What will be her annual pension from her employer?

• $45,000

• $72,000

• $55,000

• $60,000

Tags

CCSS.8.EE.C.7B

Sarah is 40 years old and works at a large corporation that offers a pension plan. The pension is calculated by multiplying the average of her highest 5 years of salary, her years of service, and a 1.8% multiplier. She plans to retire at age 65 after 25 years of service, and she expects her highest 5 years salary to average $100,000. What will be her monthly pension from her employer?

• $3,750

• $6,000

• $3,000

• $4,200

Emily started saving for her retirement by opening an IRA at age 32 with an APR of 2.75% compounded monthly. She plans to make monthly deposits of $300 until she

retires at age 60. How much does Emily deposit annually?

• $3,600

• $4,200

• $5,400

• $6,000

Emily's current taxable income is $72,300 and she is a single tax filer. What is her annual tax liability?

• $10,845

• $11,770

• $16,275

• $19,990

If Emily, she is single, makes $72,000 and is not saving $300 per month in a tax-deferred IRA, what would be her taxable income (If her retirement savings was taxable, what would be her taxable income?)

• Her taxable income would be $72,300.

• Her taxable income would be $77,000.

• Her taxable income would be $75,600.

• Her taxable income would be $78,000.

If Emily, she is single, makes $72,000 and is not saving $300 per month in a tax-deferred IRA, what would be her annual tax liability if her taxable income?

• $5,000

• $12,496

• $15,000

• $20,000

Emily started saving for her retirement by opening an IRA at age 32 with an APR of 2.75% compounded monthly. She plans to make monthly deposits of $300 until she

retires at age 60. What will be the balance in her IRA at retirement?

• $100,000

• $151,574.98

• $200,000

• $250,000

Emily started saving for her retirement by opening an IRA at age 32 with an APR of 2.75% compounded monthly. She plans to make monthly deposits of $300 until she

retires at age 60. If Emily wants to have a balance of $400,000 in her IRA when she retires, how much should he deposit monthly?

• $791.69

• $1,000

• $1,500

• $2,000

Steven is evaluating his retirement plan and wants to estimate his Social Security benefits. He applies the current Social Security benefits formula to determine his potential monthly benefit. His current monthly income is approximately $6,000. What is Steven's estimated monthly Social Security benefit upon retirement?

• $1,300

• $2,457.08

• $1,900

• $2,100

David's monthly pension is $3300 and his Social Security is $1678. If our estimates are fairly accurate for the future, what amount can David expect as monthly income from his pension and Social Security?

• $1,000

• $2,000

• $4,978

• $4,000