a. Suppose you purchased 307 securities for $25.06 per security and sold them for $30.9 per security. Assume that the securities did not make any income payments. What is your effective annual return (EAR) if the securities are sold after one month?

[Enter the answer in as a percent (e.g. 5.55% = 5.55) - not a decimal]

b. Suppose you are 21 years old and expect to work until age 70. You earn $58,450 per year. You expect inflation to be 4% over your working life, and the risk-free discount rate is 3%. Your personal consumption is equal to 28% of your after-tax earnings. You are married filing jointly and face a combined federal and state marginal tax rate of 18%. What is your expected life insurance needs according to the human life method?

[Round the final answer to the nearest cent]

c. Suppose you are 21 years old and expect to work until age 68. You earn $88,968 per year. You expect inflation to be 1% over your working life, and the risk-free discount rate is 3%. Your personal consumption is equal to 15% of your after-tax earnings. You are married filing jointly and face a combined federal and state marginal tax rate of 22%. What is your expected life insurance needs according to the adjusted capitalization of earnings method

[Round the final answer to the nearest cent]