Mark and Jim Have Contributed the Same Amount to Social

question 39

Multiple Choice

Mark and Jim have contributed the same amount to Social Security. Mark's spouse did not work while Jim's spouse was in the labor force. In terms of their real rate of return earned on Social Security, we would expect to find:

• A) Jim's real rate of return to exceed Mark's.
• B) Mark's real rate of return to exceed Jim's.
• C) Mark's and Jim's real rates of return to be the same.
• D) Jim's real rate of return to exceed Mark's during the initial years in which benefits are received. However, after the tenth year, Mark's real rate of return will exceed Jim's.

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