Case Study:

Please send a presentation and it must tell your approach to solve the problem.

i. Content:-Describes the problem,-Provides a step by step approach to the solution,-Accuracy of the solution

-Structure, Organization,-Submits the supporting documents such as Excel calculations, hand calculation, etc. in the dropbox.

1.Your grandparents are asking you for advice on when they should start collecting social security payments. If they wait until age 66, they will collect $2000 per month; but if they

start collecting at age 62, they will collect $1500 per month. Assume they live to be 85, and simplify by assuming annual payments.

(a)When do the higher payments catch up in total dollars received with the lower payment that starts earlier?

(b)If their interest rate is 6%, which plan has a higher PW?