Finding the value of social security promise

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Reference no: EM131938412

Question: Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will get paid 45 years from now) If your discount rate is 7%, compounded annually, and you plan to live for 17 years after retiring (so that you will receive a total of 18 payments including the first one), what is the value today of Social Security's promise? The value today of Social Security's promise is $ (Round to the nearest cent)

Reference no: EM131938412

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