Use the following formula to answer the indicated question: Benefit amount = Maximum award - 0.4 (Wages in excess of ceiling)Lucy is retired and earns $12,000 per year working part-time.She is entitled to a maximum Social Security retirement benefit of $14,000.Social Security regulations allow her to earn $9,000 and still get maximum benefits.Lucy's total income,including Social Security benefits,is

Question

Quizplus · Accepted Answer

First, we need to find Lucy's excess wages, which is:

Excess wages = $12,000 - $9,000 = $3,000

Next, we can use the formula given to find Lucy's benefit amount:

Benefit amount = $14,000 - (0.4 x $3,000) = $12,800

Finally, we can calculate Lucy's total income by adding her benefit amount to her part-time earnings:

Total income = $12,800 + $12,000 = $24,800

Therefore, the correct answer is C.

Use the Following Formula to Answer the Indicated Question: Benefit