Assume social security is still solvent when you retire

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1. Assume Social Security is still solvent when you retire. You can retire at age 62 and receive $2,000 per month, or you can wait until age 70 and receive $3,500 per month. Assuming your life expectancy is to age 82, which option should you choose? Assume the appropriate discount rate is 5%.

2. A 65,000 annual payment loan is made for a term of 10 years at 7.3% interest (lender charge). The lender only want payments of interest until the end of the term. The borrower make level annul payment at the end of each year to a sinking fund earning 4.8%. The total amount of each annual payment is.

Reference no: EM131853632

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