7
QuizMultiple Choice

Social Security and Medicare

Question 7 • FL-2102373-Personal Finance and Money Management Honors

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?

Answer
A
At least $81.23
B
At least $425.32
C
At least $1,410.92
D
At least $3,019.67

Explanation

Sam’s annual Social Security benefit would be 42% of $37,991, or $15,956.22. Dividing by 12 gives a monthly benefit of about $1,329.69; subtracting that from his $1,755 in monthly bills leaves $425.32 to supplement the benefit. The correct choice is “At least $425.32.”

AI-written and checked against the verified answer.

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