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Your client has been employed by Coca-Cola for 17 years, and currently earns $74,000 per year. As an employee, they pay 7.65% FICA (Social Security & Medicare) tax on their income and does not expect to have earned income from work in retirement. They also expect the same Federal and State income tax burden in retirement that they have today. Your client currently saves $16,000 per year and plans to pay off their home mortgage at retirement and live debt free. They currently spend $1,200 per month on the mortgage. What do you expect their wage replacement ratio to be based on the above information (use all available information to answer the question)? a. 41.08% b. 48.73% c. 51.27% d. 72.89%

Your client has been employed by Coca-Cola for 17 years, and currently earns $74,000 per year. As an employee, they pay 7.65% FICA (Social Security & Medicare) tax on their income and does not expect to have earned income from work in retirement. They also expect the same Federal and State income tax burden in retirement that they have today. Your client currently saves $16,000 per year and plans to pay off their home mortgage at retirement and live debt free. They currently spend $1,200 per month on the mortgage. What do you expect their wage replacement ratio to be based on the above information (use all available information to answer the question)? a. 41.08% b. 48.73% c. 51.27% d. 72.89%

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Your client has been employed by Coca-Cola for 17 years, and currently earns $74,000 per year. As an employee, they pay 7.65% FICA (Social Security & Medicare) tax on their income and does not expect to have earned income from work in retirement. They also expect the same Federal and State income tax burden in retirement that they have today. Your client currently saves $16,000 per year and plans to pay off their home mortgage at retirement and live debt free. They currently spend $1,200 per month on the mortgage. What do you expect their wage replacement ratio to be based on the above information (use all available information to answer the question)? a. 41.08% b. 48.73% C. 51.27% d. 72.89%
Transcribed Image Text:Your client has been employed by Coca-Cola for 17 years, and currently earns $74,000 per year. As an employee, they pay 7.65% FICA (Social Security & Medicare) tax on their income and does not expect to have earned income from work in retirement. They also expect the same Federal and State income tax burden in retirement that they have today. Your client currently saves $16,000 per year and plans to pay off their home mortgage at retirement and live debt free. They currently spend $1,200 per month on the mortgage. What do you expect their wage replacement ratio to be based on the above information (use all available information to answer the question)? a. 41.08% b. 48.73% C. 51.27% d. 72.89%
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