Andrew decides to wait until age 65 to begin receiving social security benefits. find the present value of his estimated $26,000 per year in payment assuming 6% per year and payment until his 90th birthday.

We can solve this problem by using the formula for finding the present value given the annuity values. The formula is given as:

P = A * [(1 + i)^n – 1] / i (1 + i)^n

Where,

P = present value of the annuity

A = the annuity value = $26,000

i = interest rate = 0.06

n = number of years = 90 – 65 = 25

Substituting the given values to the equation:

P = 26,000 * [(1 + 0.06)^25 – 1] / 0.06 (1 + 0.06)^25

P = 26,000 * 12.783356183

P = $332,367.26

Therefore the present value of his social security benefits will be about $332,367.26

answer; ///i believe the correct answer is (c) laissez-faire;