5 Surprise! Jamie Lee and Ross were stunned to find that their family of two has grown to a family of five! They were expecting twins, but when the babies were born, they discovered that they were actually the parents of triplets! Ross immediately had worries of being able to provide for the growing family: diapers, formula, college expenses times three! What if something happened to him or Jamie Lee? How would the surviving parent be able to provide for such a large family? Jamie Lee and Ross decided to purchase life insurance for Ross because his is the higher income at this time and because it would be more devastating if his income was lost due to his death. They have allowed $7,000 for funeral costs. Calculate their living expenses for 6 months to include all monthly expenses, excluding credit card debt and entertainment. Note that Ross's mother lives close and will be providing childcare to their triplets once Jamie Lee goes back to work at the bakery for half days. His mom will have a hired nanny to assist, which will cost them $1,400 a month. Use the table below to determine the amount Jamie Lee and Ross should use when shopping for life insurance. Each answer must have a value for the assignment to be complete. Enter "O" for any unused categories. Current Financial Situation Assets: Income: Checking account $4,500 Gross income (Jamie Lee) $65,000 Savings account $18,000 Emergency fund savings account $21,100 IRA balance Car (Jamie Lee) Net income after taxes (Jamie Lee) Gross income (Ross) $27,000 Net income after taxes (Ross) $13,500 Monthly Expenses: $45,500 $89,000 $73,800 Liabilities: Car (Ross) Student loan balance $21,000 Mortgage $1,525 Property taxes $600 $0 Homeowners insurance $400 Credit card balance $5,500 Utilities $260 Car loans $9,000 Food $600 Gas/maintenance $375 Credit card payment $375 Car loan payment Entertainment $309 $225 * Answer is complete but not entirely correct. Use the "family need" method to complete 1. Yearly income x 5 $ 110,000 x 2. Total approximate expenses above and beyond your daily living costs for you and your dependents (e.g. tutition, care for disabled child or parent) $ 14,900x 3. Emergency fund needed (6 months of living expenses) $ 89,400 x 4. Expected funeral expenses $ 7,000 5. Total estimate of family's financial needs (sum of lines 1-4) $ 306,400 x 6. Total liquid assets (e.g. savings account, CDs, money market funds, other life insurance, pension plan death benefits, and Social Security benefits) $ 139,500 x 7. Life insurance needs (total estimate of needs minus liquid assets) $ 166,900 x