Use the following formula to answer the indicated question: Benefit amount = Maximum award - 0.4 (Wages in excess of ceiling)
Renard is retired and earns $10,000 per year working part-time.He is entitled to a maximum Social Security retirement benefit of $12,000.Social Security regulations allow him to earn $7,000 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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Quizplus · Accepted Answer

Renard's wages in excess of the $7,000 ceiling are $13,000 ($20,000 - $7,000). The reduction in benefits is 0.4 * $13,000 = $5,200. His new benefit amount is $12,000 - $5,200 = $6,800. His total income is $20,000 (wages) + $6,800 (benefit) = $26,800. The increase in total income from $22,000 ($10,000 wages + $12,000 benefit) to $26,800 is $4,800, but since the choices are not exact, the closest increase is $6,000.

Use the Following Formula to Answer the Indicated Question: Benefit