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Information given: In 2015, Social Security will replace: (Show Work) 90% of fir

ID: 2492174 • Letter: I

Question

Information given: In 2015, Social Security will replace: (Show Work)

90% of first $826 of AIME 32% between $826 and $4980 of AIME 15% between $4980 and $9875 of AIME 0% over $9875

1. Someone who had averaged $30,000 annually would receive how much of a Social Security benefit?

2. Someone who had averaged $51,000 annually would receive how much?

3. Someone who had averaged $74,000 annually would receive how much?

4. Someone who had averaged $92,000 annually would receive how much?

5. Someone who had averaged $125,000 annually would receive how much?

6. What is the wage base for 2015? How can you tell from just using the information given above?

Explanation / Answer

6. the wage base for 2015 is $9876, over 9875 where there is no benefit on insurance of social security.

annually months month percentage benefit 1 30000 12 2500 32% 800 2 51000 12 4250 32% 1360 3 74000 12 6167 15% 925.05 4 92000 12 7667 15% 1150 5 125000 12 10417 0% 0