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Sandys Social Security statement indicates that her annual benefit at her full retirement age of 67 will be $25,000. Her financial adviser assumes inflation will
Sandys Social Security statement indicates that her annual benefit at her full retirement age of 67 will be $25,000. Her financial adviser assumes inflation will average 2% and her portfolio will have an average return of 5% over time. The advisor assumes Sandys retirement will last 30 years. The present value of Sandys Social Security benefits when she turns 67 is closest to:
A. $510,000 B. $403,500 C. $571,100 D. $493,750
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