Joetta Hernandez is a single parent with two children and earns $39,100 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $52, 133 saved in a 401(k) plan, $4,344 in mutual funds, and a $2,607 CD. 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's insurance coverage? Click on the table icon to view the PVIFA table : 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 $ . (Round to the nearest dollar.) 2 3 4 5 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 Present Value of an Annuity of $1 (PVIFA) 3% 4% 5% 6% 7% 0.971 0.962 0.952 0.943 0.935 1.913 1.886 1.859 1.833 1.808 2.829 2.775 2.723 2.673 2.624 3.717 3.630 3.546 3.465 3.387 4.580 4.452 4.329 4.212 4.100 5.417 5.242 5.076 4.917 4.767 6.230 6.002 5.786 5.582 5.389 7.020 6.733 6.463 6.210 5.971 7.786 7.435 7.108 6.802 6.515 8.530 8.111 7.722 7.360 7.024 9.253 8.760 8.306 7.887 7.499 9.954 9.385 8.863 8.384 7.943 6 9% 0.917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 8 10 6.418 11 12 7 6.805 .161 13 | 14 | 16 ell els ele la sala ala | 18 19 | 12.134 | 13.004 | 13.865| 14.718| 15.562| 16.398| 17.226| | 18.046|| 18.857 19.660 20.456| | 21.243 | 22.023| 25.808| 11.348|| 12.106| | | 12.849| | 13.578 | 14.292|| 14.992 15.678| 16.351 17.011 17658 18.292 _18.914| 19.523| 22.396| 10.635|| | 9.986 | 9.394 | 8.853| 8.358| 11.296 | 10.563| 9.899| 9.295 8.745| | 11.938 | 11.118 10.380| 9.712 9.108 12.561 | 11.652 | 10.838| | 10.106| | 9.447 | 13.166 12.166 | 11.274 10.477| 9.763| 13.754 | 12.659| | 11.690|| | 10.828|| 10.059 | 14.324 13.134 | 12.085|| | 11.158 | 10.336 14.877 13.59| | 12.462 | 11.470 | 10.594 | 15,415 14.029| [12.821| | 11.764 | 10.836|| 15.937 14.451 13.163 12.042| | 11.061|| 16.444 14.857 13.489 | 12.303 11.272] 16.936 15.247 13.799| 12.550 11.469 17.413| 15.622 14.094 | 12.783| | 11.654 | 19.6ool _17.2921 15.372 13.765 12.409 7.904 8.244 | 8.559 8.851| | 9.122| 9.372 | | 9.604 9.818|| 10.017 10.201| 10.371| | 10.529 10.675 | 11.28 7.487| [ 7.103| 7.786| 7.367|| 8.061| 7.606|| 8.313| 7.824 8.544 8.022| 8.756| | 8.201| 8.950 8.365 9.129| 8.514 9.292 8.649 9.442|| 8.772|| 9.580| | 8.883| 9.7078,985) 9.823| 10.2749.427] 20 21 22 23 24 9.077 25 30 32.835 39.196 27.355 31.424 23.115 25.730 19.793 21.482 17.159 18.256 15.046 15.762 13.332 13.801 11.925 12.233 10.757 10.962 9.779 9.915