Homework Answers
40000 is the average annual salary for a graduate from Radford University.
If the salary is growing at the inflation rate i.e. 3%
Annual Salary at the age of 62 = 40000((1.03)^(62-23)) = 126681.08
Annual Salary at the age of 67 = 40000((1.03)^(67-23)) = 146858.09
Annual Early retirement benefit at the age of 62 as of 2020 = 27180
Inflation adjusted early retirement benefit = 27180*((1.03)^(62-23)) = 86,079.79
Annual Full retirement benefit at the age of 67 as of 2020 = 36132
Inflation adjusted full retirement benefit = 36132*((1.03)^(67-23)) = 132656.91
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