Layla meets with her insurance agent, Trong, to discuss her insurance needs. Layla has an after-tax...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Layla meets with her insurance agent, Trong, to discuss her insurance needs. Layla has an after-tax income of $3,800 per month, her rent is $1,200, and her other expenses total $1,500 per month. Trong calculates how much life insurance Layla needs using the income replacement approach, adjusted for taxes. Assuming an annual investment return of 5% and an average tax rate of 30%, what is the approximate amount of life insurance needed? 22 0 Oa) $650,000 Ob) $900,000 Oc) $1.3 million Od) $1.5 million Layla meets with her insurance agent, Trong, to discuss her insurance needs. Layla has an after-tax income of $3,800 per month, her rent is $1,200, and her other expenses total $1,500 per month. Trong calculates how much life insurance Layla needs using the income replacement approach, adjusted for taxes. Assuming an annual investment return of 5% and an average tax rate of 30%, what is the approximate amount of life insurance needed? 22 0 Oa) $650,000 Ob) $900,000 Oc) $1.3 million Od) $1.5 million
Expert Answer:
Related Book For
Managing Information Technology
ISBN: 978-0132146326
7th Edition
Authors: Carol Brown, Daniel DeHayes, Jeffrey Hoffer, Wainright Marti
Posted Date:
Students also viewed these banking questions
-
Manta Ray Company manufactures diving masks with a variable cost of $35. The masks sell for $44. Budgeted fixed manufacturing overhead for the most recent year was $799,000. Actual production was...
-
You are appointed as a sustainability manager of Devils Corner Wines in the East Coast Region of Tasmania in June 2022. Devils Corner is nestled among the rolling patchwork fields of the beautiful...
-
Amount in Dollars Amount in Dollars Sales 1 00 000 79 900 Cost of goods sold 47 500 39 950 Operating expenses 750 500 Selling expenses 9 500 9 000 Administrative expenses 12 000 12 000 Net income 30...
-
What types of costs should be considered in deriving the economic order quantity?
-
Jonas recently purchased a one-year membership at Golds Gym. He can add a second year to the membership now for $1215, or wait 11 months and pay the regular single- year price of $1280. Which is the...
-
After a fuel rod in a fission reactor reaches the end of its life cycle (typically 3 years), most of the energy that it produces comes from the fissioning of plutonium-239. How can this be?
-
Peco Athletics and its subsidiary, Stetson Footwear, engage in intercompany transactions, as follows: Peco sells merchandise to Stetson at a markup of 35% on cost. In 2015, Peco sold merchandise to...
-
Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter. SNIDER CORPORATION Balance Sheet December 31, 2013 Assets Current assets:...
-
Need your explanation please. We have covered several ratios in this unit that users of financial statements can work with to evaluate a company's performance. However, not all ratios are important...
-
M Enterprises has a business calendar year ending, December 31st. The business has the following information about its depreciable properties at the beginning of 2021: Type of Asset Class 1 Building...
-
What roles do IRNA and mRNA play in translation? Sort the descriptions to the appropriate bins. tRNA contains a copy of the DNA triplet codes carnes amino acid mRNA anticodon codon Reset Help
-
How do endocrine signaling pathways, including gonadotropin-releasing hormone (GnRH), follicle-stimulating hormone (FSH), luteinizing hormone (LH), and sex steroids, regulate reproductive physiology...
-
1 9 8 9 C Corporation had gross income of $ 2 5 0 , 0 0 0 , cost of goods sold of $ 8 0 , 0 0 0 . entertainment of $ 2 0 , 0 0 0 , lobbying of $ 5 , 0 0 0 , other expenses of $ 8 8 , 0 0 0 . What is...
-
Sales are 600 000 Gross profit is 220 000 Other operating expenses are 120 000 Income tax rate is 30% Calculate net earnings
-
Executive Suites operates a 100-suite hotel in a busy business park. During April, a 30-day month, Executive Suites experienced a 90% occupancy rate from Monday evening through Thursday evening...
-
How much must be deposited at the end of each two-month period in an account that pays 9.13% annually with bimonthly capitalization, to accumulate $529,137 pesos at the end of 9 years and 10 months.
-
part1-15 NPV - Mutually exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration....
-
Pedro Bourbone is the founder and owner of a highly successful small business and, over the past several years, has accumulated a significant amount of personal wealth. His portfolio of stocks and...
-
Give an assessment of Clarions Current Information Systems. John Young, Controller of the Clarion School for Boys, Inc.Milwaukee Division, hung up the telephone as the school bell signaled the end of...
-
Choose one of the five factors associated with successful ERP implementations (presented in the section entitled Special Case: Enterprise System Packages) and comment on how different this really is...
-
Describe the five basic steps in information resource planning, and some ways that business managers might participate in each step?
-
Alexa Inc. purchased equipment in 2018 for \(\$ 50,000\) with no residual value. On December 31,2020 , accumulated depreciation using the straight-line method for financial reporting was \(\$...
-
On December 31, 2020, Lexxus Inc. recorded an unrealized gain in income of \(\$ 5,000\) related to its trading debt securities originally purchased on December 15,2020 , for \(\$ 20,000\). Lexxus...
-
Underwood Co. had current tax expense of \(\$ 20,000\) for the year ended December 31, 2020. The ending deferred tax asset balance was \(\$ 6,000\), which was a \(\$ 4,000\) increase from January...
Study smarter with the SolutionInn App