Question

Sam is thinking of retiring from his job after many years of faithful service. During the last 35 years at his job, his annual salary averages to $37,991. Every month, his bills total $1,755. How much money would Sam need each month to supplement his monthly Social Security benefit (assuming his annual benefit is 42% of his salary average) and still be able to pay his bills?
a.
At least $81.23
b.
At least $425.32
c.
At least $1,410.92
d.
At least $3,019.67

Answer 1

Social Security yearly = 0.42 × 37,991 = 15,956.22, so monthly = 15,956.22 ÷ 12 = 1,329.685 ≈ 1,329.69.
Needed supplement = 1,755 − 1,329.685 = 425.315 ≈ $425.32.

Answer: b. At least $425.32