Joetta Hernandez is a single parent with two children and earns $49,300 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $65,733 saved in a 401(k) plan, $5,478 in mutual funds, and a $3,287 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's insurance coverage? Click on the table icon to view the PVIFA table . (Round 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 $ to the nearest i Data Table - X 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 5.971 8% 0.926 1.783 2.5771 3.312 3.993 4.623 5.206 5.7471 6.247 6.710 7.139 7.536 7.904 8.244 6.802 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 18.292 18.914 19.523 22.396 27 355 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 5.2425 .076|| 4.917 4.767 6.230 6.002 5.786 5.582 5.389 7.020 6.733 6.463 6.210 7.786 7.435 7.108 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 10.635 9.986 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 13.590 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 16.444 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 19.600 17.292 15.372 13.765 12.409 23.115 19.793 17.159 15.046 13.332 0.917 1 759 2.5311 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129 11.255 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 7.824 8.022 8.201 8.365 8.514 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 32.835 8.559 8.851 9.122 9.372 9.604 9.818 8.649 Enter your ans 10.2011 10.371 10.529 10.675 11.258 11.925 9.442 8.772 9.5808.883 9.707 8.985 9.823 9.077 10.274 9.427 10.757 9.779 1 part I remaining ver Joetta Hernandez is a single parent with two children and earns $49,300 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $65,733 saved in a 401(k) plan, $5,478 in mutual funds, and a $3,287 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's insurance coverage? Click on the table icon to view the PVIFA table . (Round 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 $ to the nearest i Data Table - X 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 5.971 8% 0.926 1.783 2.5771 3.312 3.993 4.623 5.206 5.7471 6.247 6.710 7.139 7.536 7.904 8.244 6.802 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 18.292 18.914 19.523 22.396 27 355 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 5.2425 .076|| 4.917 4.767 6.230 6.002 5.786 5.582 5.389 7.020 6.733 6.463 6.210 7.786 7.435 7.108 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 10.635 9.986 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 13.590 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 16.444 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 19.600 17.292 15.372 13.765 12.409 23.115 19.793 17.159 15.046 13.332 0.917 1 759 2.5311 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129 11.255 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 7.824 8.022 8.201 8.365 8.514 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 32.835 8.559 8.851 9.122 9.372 9.604 9.818 8.649 Enter your ans 10.2011 10.371 10.529 10.675 11.258 11.925 9.442 8.772 9.5808.883 9.707 8.985 9.823 9.077 10.274 9.427 10.757 9.779 1 part I remaining ver