A. Carlos's wife earns $11,600 per year. If Carlos dies, his family would require $57,900 to cover their living expenses. Some of the yearly expenses would be offset by $29,200 from stock dividends, but this is still not enough. How much insurance should Carlos have to cover the shortfall, given a 13.7% prevailing interest rate?

a. $423,000

b. $125,000

c. $3,000

d. $298,000

B.

At age 29, Akeem has decided to purchase a 10-year term insurance policy with face value of $240,000. Use Tables 19-1 and 19-2 in your text to calculate his quarterly premium.

	a.	$290.44
	b.	$751.90
	c.	$326.35
	d.	$152.38