Use the following formula to answer the indicated question: Benefit amount = Maximum award - 0.6 (Wages in excess of ceiling)Charles is retired and earns $10,000 per year working part-time.He is entitled to a maximum Social Security retirement benefit of $14,000.Social Security regulations allow him to earn $8,000 and still get maximum benefits.If he increases the number of hours he works and thus increases his earnings to $20,000,his total income will increase by

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The total income increase is calculated by adding the increase in wages to the adjusted benefit amount. Initially, Charles earns $10,000 with a maximum benefit of $14,000, totaling $24,000. If he earns $20,000, the excess over the $8,000 ceiling is $12,000. The benefit reduction is 0.6 * $12,000 = $7,200, so his new benefit is $14,000 - $7,200 = $6,800. His total income with the increased earnings is $20,000 (wages) + $6,800 (benefit) = $26,800. The increase in total income from the original $24,000 is $26,800 - $24,000 = $2,800. However, given the options do not match this calculation, the closest provided option, based on the expected approach, is A) $4,000, indicating a potential misunderstanding in the calculation or a mistake in the provided options and explanation.

Use the Following Formula to Answer the Indicated Question: Benefit