Joetta Hernandez is a single parent with two children and eams $40,500 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $54,000 saved in a 401(k) plan, S4,500 in mutual funds, and a $2,700 Dertificate of deposit. She wants to purchase term life insurance for 15 years, until her youngest child is self-supporting. She is not concemed about her outstanding mortgage, as the children would live with her sister in the event of Joetta's death. Assurring she can receive a 2 percent after-tax, after-inflation returri on insurance proceeds, use the earnings multiple method to calculate her insurance nood. How much more insurance does Joella 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 B Assuming she can receive a 2 percent after-tax, after-inflation retum on insurance proceeds and using the earnings multiple method, Joetta's insurance need is $(Round to the nearest dollar.) Data Table n 1 2 2 3 4 5 8 7 8.733 B 9 9 10 11 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.36 11.255 12.134 13.004 13.865 14.718 15.562 16.398 17.226 18.048 18.857 19.680 1561 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 11.348 12.106 12.849 13.578 14.292 14.992 15.678 16.351 17.011 17.658 19 202 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 1.836 1.859 1.833 1,808 2.829 2.775 2.723 2.673 2.624 3.717 3,630 3.546 3.485 3.387 4.580 4.452 4.329 4.212 4.100 5.417 5.242 5.076 4.9171 4.767 6.230 6.002 5.786 5.582 5.389 7.020 6.463 8.210 5.971 7.786 7.435 7.108 6.802 6.515 8.530 8.1111 7.722 7.380 7.024 9.253 8.760 8.306 7.887 7.499 9.954 9,385 8.863 8.384 7.943 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 12.581 11.652 10.838 10.106 9.447 13.166 12.166 11.274 10.4771 9.763 13.754 12.659 11.890 10.826 10.059 14.324 13.134 12.085 11.158 10.336 14.877 13.590 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 AM 14 9571 13190 12 11 972 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 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818 10.017 10.201 10 974 9% 0.917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 8.418 6.805 7.161 7.487 7.786 8.061 3.313 8.544 3.756 8.950 9.129 9.292 9.442 O SAN 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 7.103 7.367 7.606 7.324 8.022 8.201 8.365 8.514 8.649 8.772 29431 12 13 14 15 16 17 18 19 20 21 Help Me Solve This View an Clear All Check Answer 22 123
