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

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To find Lucy's Social Security benefit amount, we need to use the formula:

Benefit amount = Maximum award - 0.4 (Wages in excess of ceiling)

First, we need to determine how much of Lucy's wages are in excess of the limit. Lucy can earn $9,000 from working without affecting her Social Security benefits, so any earnings over $9,000 will be considered in excess of the limit. Lucy earns $12,000 per year from her part-time job, so her excess earnings are:

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

Now we can use the formula to find Lucy's Social Security benefit amount:

Benefit amount = $14,000 - 0.4 ($3,000)
Benefit amount = $14,000 - $1,200
Benefit amount = $12,800

Finally, we can find Lucy's total income by adding her Social Security benefits to her earnings:

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

Therefore, the best choice is C, $24,800.

Use the Following Formula to Answer the Indicated Question: Benefit