Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Julian, age 45, would like to determine how much life insurance to purchase using the human life value approach. He assumes his average annual earnings
Julian, age 45, would like to determine how much life insurance to purchase using the human life value approach. He assumes his average annual earnings over the next 20 years will be $50,000. Of this amount, $32,000 is available annually for the support of his family. Julian will generate this income for 21 more years and he believes that 5 percent is the appropriate interest (discount) rate. What is Julian's human life value ( to nearest $1,000 ) ?
A) $256,423
B) $384,635
C) $410,277
D) $672,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started