How much insurance would be needed in order to provide for a family for 20 years if the pretax income necessary to cover living expenses is $50,000 and the money can be invested at 6%?

Hint: (a) what is the budgeted income necessary to cover living expenses? (b) Now, multiply this number by the Present Value interest factor annuity (PVIFA) for the rate of investment and the number of years provided in the problem that is: $50,000 x PVIFA at 6% and 20 years, look up the table in text or online and calculate.