In 2020, the two bend points for computing Social Security’s Primary Insurance Amount (PIA) are $960 and $5,785. This means that in 2020, the benefit formula works in the following way: PIA is given by 90% of the first $960 of AIME, plus 32% of the amount above $960 until $5,785, plus 15% of the amount above $5,785.   Suppose that after a long and successful career, somebody has reached the full benefits age and has average indexed monthly earnings of $5,000. What is their Primary Insurance Amount?   $1,292.80   $1,600.00   $2,156.80   $2,464.00   $2,515,25

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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In 2020, the two bend points for computing Social Security’s Primary Insurance Amount (PIA) are $960 and $5,785. This means that in 2020, the benefit formula works in the following way: PIA is given by 90% of the first $960 of AIME, plus 32% of the amount above $960 until $5,785, plus 15% of the amount above $5,785.

 

Suppose that after a long and successful career, somebody has reached the full benefits age and has average indexed monthly earnings of $5,000. What is their Primary Insurance Amount?

 

$1,292.80

 

$1,600.00

 

$2,156.80

 

$2,464.00

 

$2,515,25

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