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Please double check my work on the above problem, not sure about this one. something seems off. 43) Bertha is considering taking an early retirement
Please double check my work on the above problem, not sure about this one. something seems off.
43) Bertha is considering taking an early retirement offered by her employer. She would receive $3,000 per month, indexed for inflation. However, she would no longer be able to use the company's health facilities, and she would be required to pay her hospitalization insurance premiums of $8,000 per year. Bertha receives a salary of $55,000 per year. If she retires, she will spend approximately $300 less each month for commuting and clothing. Bertha and her husband have another source of income and are in and will remain in the 25% marginal tax bracket. Her income tax for the current year was $8,875. She currently pays social security and Medicare taxes of 7.65% on her salary, but her retirement pay would not be subject to this tax. According to Bertha, she and her husband could live well if her after tax retirement income was at least 50% of her current income. Provide Bertha with information she will need t make her decisionStep by Step Solution
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