Question

Susan has calculated that she needs $58000 her first year of retirement to maintain her standard of living. She expects to receive

$1000 per month from her employer defined-benefit pension and $1500 per month from Social Security. What is her annual
retirement income shortfall?

answer options:
28,000
40,000
58,000
150,000

Answer 1

$28000

Explanation:

12×1000 + 12×1500 = 12000 + 18000 = $30000

the shortfall is the difference between $58000 and $30000

58000 - 30000 = $28000