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Christina will be retiring next month from her job after 35 years as a school bus driver. Over the last 35...

Christina will be retiring next month from her job after 35 years as a school bus driver. Over the last 35 years, Christina's annual salary averaged $2,040. She expects to receive some money each month from Social Security and plans to take the rest of the money she needs to pay the monthly bills from savings. Each month her bills total to about $1,375. Assuming her annual Social Security benefit will be 42% of her salary average, how much will she need to take from savings each month to help pay the bills?
a. At least $771.40
b. At least $603.60
c. At least $629.71
d. At least $1,722.08
Please select the best answer from the choices provided
A
B
C
D

Answer

To find out how much Christina will need to take from savings each month, we first calculate her monthly Social Security benefit:

  1. Annual salary average = $2,040
  2. Social Security benefit = 42% of $2,040 = 0.42 * 2040 = $856.80 annually
  3. Monthly Social Security benefit = $856.80 / 12 = $71.40

Now, calculate how much she needs from savings:

  1. Monthly bills = $1,375
  2. Amount needed from savings = $1,375 - $71.40 = $1,303.60

Therefore, the correct answer is:

  1. B. At least $603.60

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