Joetta Hernandez is a single parent with two children and earns $36,800 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $49,067saved in a 401(k) plan, $4,089 in mutual funds, and a $2,453

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 5percent 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? Assuming she can receive a 5 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.)

n 1 INS 3 4 5 6 7 8 9 10 11 12 13 14 15 16 177 1% 0.990 1970 2941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12134 13 004 13.865 14.718 SLO 2% 0.980 1942 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 142021 Present Value of an Annuity of $1 (PVIFA) 3% 4% 5% 6% 7% 0.971 0.962 0.952 0.943 0.935 1913 1.886 1.859 1.833 1.808 2.829 2.775 2.723 2.673 2624 3.717 3.630 3.546 3.465 3.387 4.580 4.452 4.329 4212 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 7360 7.024 9253 8.760 8.306 7.887 7 499 9.954 9.385 8.863 8.384 7943 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 12 122169 $11274 10. 9783 8% 0.926 1.783 2577 3.312 3.993 4623 5 206 5747 6247 6.710 7 139 7536 7.904 8.244 8.559 8 851 9% 0.917 1.759 2531 3240 3.890 4.486 5033 5.535 5.995 6.418 6.805 7.161 7.487 7.788 8.061 8 313 96 10% 0.909 1.736 2487 3170 3.791 4.355 4868 5 335 5.759 5.145 6.495 6 814 7 103 7367 7 606 7824