1.

a. If Jackie retires at age 65, she will receive a monthly pension of $2,100. If she retires before age 65, her monthly benefits will be reduced by 20%. Suppose Jackie retires at age 64. What will be the amount of her pension over the course of one year? ($1,680 , $18,680 , $19,520 , or $20,160)

b. Joe is a self-employed farmer who contributes yearly to his Keogh plan retirement savings plan. In 2008, he had an earned income of $95,000. How much could he contribute to his Keogh plan? ($11,500 , $23,750 , $46,000 , or $71,250)