n 1 2 1.833 4 5 6 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 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 1.808 2.829 2.775 2.723 2.673 2.624 3.717 3.630 3.546 3.465 3.387 4.580 4.329 4.212 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 7.360 7.024 9.253 8.760 8.306 7.887 7.499 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 9% 0.917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 7 5 206 8 9 10 11 13 14 | 11.255 12.134 13.004 13.865 14.718 15 16 17 18 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 9.954 10.635 11.296 11.938 12.561 13.166 13.754 14.324 14.877 15.415 15.937 16.444 16.936 9.385 9.986 10.563 11.118 11.652 12.166 12.659 13.134 13.590 14.029 14.451 14.857 15.247 16.398 17.226 18.046 18.857 19.660 20.456 21.243 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 12.821 13.163 13.489 13.799 8.384 8.853 9.295 9.712 10.106 10.477 10.828 11.158 11.470 11.764 12.042 12.303 12.550 7.943 8.358 8.745 9.108 9.447 9.763 10.059 10.336 10.594 10.836 11.061 11.272 11.469 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818 10.017 10.201 10.371 10.529 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129 9.292 9.442 9.580 9.707 6.814 7.103 7.367 7.606 7.824 8.022 8.201 8.365 8.514 8.649 8.772 8.883 8.985 19 20 21 22 23 24 alle Anl Al anna 25 30 40 50 22.023 25.808 32.835 39.196 19.523 22.396 27.355 31.424 17.413 19.600 23.115 25.730 15.622 17.292 19.793 21.482 14.094 15.372 17.159 18.256 12.783 13.765 15.046 15.762 11.654 12.409 13.332 13.801 10.675 11.258 11.925 12.233 9.823 10.274. 10.757 10.962 9.077 9.427 9.779 9.915 Joetta Hernandez is a single parent with two children and earns $39,100 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $52,133 saved in a 401(k) plan, $4,344 in mutual funds, and a $2,607 CD. 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 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 $ . (Round to the nearest dollar.) n 1 2 1.833 4 5 6 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 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 1.808 2.829 2.775 2.723 2.673 2.624 3.717 3.630 3.546 3.465 3.387 4.580 4.329 4.212 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 7.360 7.024 9.253 8.760 8.306 7.887 7.499 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 9% 0.917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 7 5 206 8 9 10 11 13 14 | 11.255 12.134 13.004 13.865 14.718 15 16 17 18 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 9.954 10.635 11.296 11.938 12.561 13.166 13.754 14.324 14.877 15.415 15.937 16.444 16.936 9.385 9.986 10.563 11.118 11.652 12.166 12.659 13.134 13.590 14.029 14.451 14.857 15.247 16.398 17.226 18.046 18.857 19.660 20.456 21.243 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 12.821 13.163 13.489 13.799 8.384 8.853 9.295 9.712 10.106 10.477 10.828 11.158 11.470 11.764 12.042 12.303 12.550 7.943 8.358 8.745 9.108 9.447 9.763 10.059 10.336 10.594 10.836 11.061 11.272 11.469 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818 10.017 10.201 10.371 10.529 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129 9.292 9.442 9.580 9.707 6.814 7.103 7.367 7.606 7.824 8.022 8.201 8.365 8.514 8.649 8.772 8.883 8.985 19 20 21 22 23 24 alle Anl Al anna 25 30 40 50 22.023 25.808 32.835 39.196 19.523 22.396 27.355 31.424 17.413 19.600 23.115 25.730 15.622 17.292 19.793 21.482 14.094 15.372 17.159 18.256 12.783 13.765 15.046 15.762 11.654 12.409 13.332 13.801 10.675 11.258 11.925 12.233 9.823 10.274. 10.757 10.962 9.077 9.427 9.779 9.915 Joetta Hernandez is a single parent with two children and earns $39,100 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $52,133 saved in a 401(k) plan, $4,344 in mutual funds, and a $2,607 CD. 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 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 $ . (Round to the nearest dollar.)
