Joetta Hernandez is a single parent with two children and earns

$38,600

a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has

$51,467

saved in a 401(k) plan,

$4,289

in mutual funds, and a

$2,573

certificate of deposit. She wants to purchase term life insurance for 15 years, until her youngest child is self-supporting. She is not concerned about her outstanding mortgage, as the children would live with her sister in the event of Joetta's death. Assuming she can receive a

2

percent after-tax, after-inflation return on insurance proceeds, use the earnings multiple method to calculate her insurance need. How much more insurance does Joetta need to buy? What other information would you need to know to use the needs approach to calculate Joetta'sinsurance coverage?Click on the table icon to view the PVIFA table

LOADING...

.

Assuming she can receive a

2

percent after-tax, after-inflation return on insurance proceeds and using the earnings multiple method, Joetta's insurance need is

$enter your response here.

(Round to the nearest dollar.)

Jooms with other and a year Hamployer's c2535467 deposits to purchase termice 15 St youngest comedy moet wou with the mom mood WWW nchini boloved on to the PLAT FUCHSICH Ass Shercov profondo po JI out Show Ophold a peste mode POSSIMO wou do VERO Ashapecoense B9 in mutual funds, and a $257 he event of Joott's death. Assu bon would you need to know to 1% 0990 NEO 4212 11 2 13 4 5 16 7 B 9 10 111 12 13 14 15 16 17 18 1970 2.941 3 902 4.853 5.795 6.728 7 652 8 566 9-471 10.368 11 255 12.134 13.004 13.865 14718 15.562 16 398 2% 0980 1.9421 2 884 3 808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 11.348 12 106 12 849 13.578 14.292 14.992 Present Value of an Annuity of S1 (PVIFA) 3% 41% 5% 6% 7% 0.971 0982 0.952 0.943 0 935 1913 1886 1.859 1833 1.800 2.829 2775 2723 2673 2824 3.717 3630 3.546 3 465 3337 4580 4452 4.329 4.100 5.417 5 242 5076 4917 1767 6.230 6.0021 5 786 5.582 5.399 71020 6.733 8.463 6210 5.971 7.786 7.435 2108 6.802 6515 8.530 8.1111 71722 7.300 7024 9.253 8 760 8 306 7.887 7.499 9954 9385 8 863 8384 7943 10.635 9.986 9.394 8.853 8358 11.2016 10.563 9.899 9.295 8.745 11938 11 118 10 380 9.712 9.108 12 561 11652 10.838 10.106 9.447 13.1661 12.166 11 274 10.4771 9.783 13 754 12 659 11 690 10 828 10 050 8% 0.926 1.783 25771 3.312 3.993 4.623 5206 5.747 8.247 6.710 7139 7.536 7 904 8.244 8559 8851 9.122 9.372 9% 0917 1.250 2531 3.240 3890 4486 5033 5,536 5995 5418 6.805 7161 7487 7 786 B 061 8.313 8.544 8.756 10% 0.900 1736 2487 3170 3.7911 4.355 4858 5.335 5.759 8.145 6.495 6.814 7103 7367 7.606 7,824 8.022 8 201 Jooms with other and a year Hamployer's c2535467 deposits to purchase termice 15 St youngest comedy moet wou with the mom mood WWW nchini boloved on to the PLAT FUCHSICH Ass Shercov profondo po JI out Show Ophold a peste mode POSSIMO wou do VERO Ashapecoense B9 in mutual funds, and a $257 he event of Joott's death. Assu bon would you need to know to 1% 0990 NEO 4212 11 2 13 4 5 16 7 B 9 10 111 12 13 14 15 16 17 18 1970 2.941 3 902 4.853 5.795 6.728 7 652 8 566 9-471 10.368 11 255 12.134 13.004 13.865 14718 15.562 16 398 2% 0980 1.9421 2 884 3 808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 11.348 12 106 12 849 13.578 14.292 14.992 Present Value of an Annuity of S1 (PVIFA) 3% 41% 5% 6% 7% 0.971 0982 0.952 0.943 0 935 1913 1886 1.859 1833 1.800 2.829 2775 2723 2673 2824 3.717 3630 3.546 3 465 3337 4580 4452 4.329 4.100 5.417 5 242 5076 4917 1767 6.230 6.0021 5 786 5.582 5.399 71020 6.733 8.463 6210 5.971 7.786 7.435 2108 6.802 6515 8.530 8.1111 71722 7.300 7024 9.253 8 760 8 306 7.887 7.499 9954 9385 8 863 8384 7943 10.635 9.986 9.394 8.853 8358 11.2016 10.563 9.899 9.295 8.745 11938 11 118 10 380 9.712 9.108 12 561 11652 10.838 10.106 9.447 13.1661 12.166 11 274 10.4771 9.783 13 754 12 659 11 690 10 828 10 050 8% 0.926 1.783 25771 3.312 3.993 4.623 5206 5.747 8.247 6.710 7139 7.536 7 904 8.244 8559 8851 9.122 9.372 9% 0917 1.250 2531 3.240 3890 4486 5033 5,536 5995 5418 6.805 7161 7487 7 786 B 061 8.313 8.544 8.756 10% 0.900 1736 2487 3170 3.7911 4.355 4858 5.335 5.759 8.145 6.495 6.814 7103 7367 7.606 7,824 8.022 8 201