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Mark has analyzed his expenses and has concluded that he needs $25,000 annually over a 7 year period to cover his family in the event
Mark has analyzed his expenses and has concluded that he needs $25,000 annually over a 7 year period to cover his family in the event of his death. Mark does NOT participate in Social Security. Based only on these income replacement needs, what face value of life insurance is needed for Mark? Assume that Mark has no other resources to put toward this need and that he would invest the life insurance proceeds in an account returning a 4% real annual rate of return.
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