8 Charles (age 38) has just died. He has been credited with the last 30 consecutive credits of Social Security coverage in the last 30 quarters since he left school and began full-time employment. He had never worked before leaving school. Which of the following persons are eligible to receive Social Security survivor benefits as a result of Charles's death?
1. Charles's child, Bill, age 16
2. Charles's child, Dawn, age 19
3. Charles's widow, Maggie, age 38
4. Charles's dependent mother, Betty, age 60
Answers:
1 and 2
1, 2 and 4
2, 3 and 4
1 only 10 Jason has determined he will have an annual retirement income deficit. The deficit for the first year of retirement, 10 years from now, is $90,000. He expects to be in retirement for 30 years, and believes he can earn a 7% after-tax annual return on invested dollars. Inflation is expected to average 4% annually over this same period. What is the amount of lump-sum retirement funds needed by Jason at the beginning of retirement to fund his additional retirement income needs? (Round to the nearest dollar.)
Answers:
$1,816,961
$1,392,409
$1,842,297
$1,790,644 ;