2. Lakned Jones is fifty years old. He is working with you, his financial planner, to calculate his long-term care insurance need. Please use the following assumptions to calculate Lakneds net LTC need:

Current Annual Cost of LTC: $73,000

Age at which Lakned will need LTC Services: seventy

LTC Inflation Rate: 4.50 percent

Number of Years Benefits will be Needed: sixBefore-Tax Rate of Return: 7 percent

Marginal Tax Bracket: 24 percent

Annual Increase in Savings: 0 percent

Current Value of Assets Set Aside for LTC Need: $100,000