1. How is Social Security primarily funded?

Individual taxpayers

Both taxpayers and employers

Earnings from Social Security Trust

2. Based on your estimates, youll need $38400 per year to cover your expenses after you retire this month. You expect your expenses to increase with inflation at 4 percent per year, and you hope to live 35 years after retiring. How much retirement wealth do you need to have now if youll invest your funds to earn 5 percent per year?

3. Assume that the first-year cost of attending college is currently $10,000 and that this cost is increasing at a rate of 4 percent per year. What is the amount needed now to fund four years of college, assuming that your invested funds earn 4 percent per year after taxes and you plan to begin school this year?