Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) Assuming she can earn 4% after taxes on the college funds, how much of the $100,000 from Chad's life insurance proceeds would Kerry have

image text in transcribed
image text in transcribed
a) Assuming she can earn 4% after taxes on the college funds, how much of the $100,000 from Chad's life insurance proceeds would Kerry have to set aside for Logan and Liliana's college educations? b) Is the $100,000 life insurance proceeds provide enough to fulfill each of the college goals in part 5a? If not, how much will she need to add of her money to meet the college goals? c) If she can earn 2% after taxes on the car fund, how much would she have to set aside annually for that goal? d) If she can earn 6% after taxes on the business fund, how much would she need to save annually for that goal? e) How much total will she have to save annually to meet the all of the goals? Remember to include the 401(k) goal in this answer. a) Is Kerry's current life insurance policy adequate for the children to receive $40,000 each year if the funds could provide a return of 4% annually? b) If not, what additional amount of life insurance does Kerry need to meet this goal? a) Assuming she can earn 4% after taxes on the college funds, how much of the $100,000 from Chad's life insurance proceeds would Kerry have to set aside for Logan and Liliana's college educations? b) Is the $100,000 life insurance proceeds provide enough to fulfill each of the college goals in part 5a? If not, how much will she need to add of her money to meet the college goals? c) If she can earn 2% after taxes on the car fund, how much would she have to set aside annually for that goal? d) If she can earn 6% after taxes on the business fund, how much would she need to save annually for that goal? e) How much total will she have to save annually to meet the all of the goals? Remember to include the 401(k) goal in this answer. a) Is Kerry's current life insurance policy adequate for the children to receive $40,000 each year if the funds could provide a return of 4% annually? b) If not, what additional amount of life insurance does Kerry need to meet this goal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

16th Edition

0357517571, 978-0357517574

More Books

Students also viewed these Finance questions