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Peter, who is married (Lois, age 40) and the father of three ages 15, 18, and is 45 years old and expects to continue to

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Peter, who is married (Lois, age 40) and the father of three ages 15, 18, and is 45 years old and expects to continue to work until age 70. He earns $95.000 per year and expects annual salary increases of 1.5 Peter expects Inflation to be over his working life, and the appropriate risk free discount rate is 3% His personal consumption is equal to 20% of his after-tax carnings, and his combined federal and state marginal tax bracket is 28. Peter and to have set the following goals and assumptions: Income needed - readjustment periody) $77,750 Income needed dependency period 577750 Income weded "empty nest period 562.500 Income needed retirement 54750 Esime expenses and debts 315.000 dacation fund needed in today's dollars) SMOK.500 Investment assets (cash/cash equivalents) current S100,000 Expected Social Security income while children are under 16 $20,000 Expected Social Security income while children are 17 and 18 $15,000 Expected Social Security income in retirement SI8,000 Lois's life expectancy 90 years Lois's expects Social Security benefits to begin Ape 67 Discount Rate Calculate the amount of life insurance Peter needs based on the Human Life Value Method Peter, who is married (Lois, age 40) and the father of three ages 15, 18, and is 45 years old and expects to continue to work until age 70. He earns $95.000 per year and expects annual salary increases of 1.5 Peter expects Inflation to be over his working life, and the appropriate risk free discount rate is 3% His personal consumption is equal to 20% of his after-tax carnings, and his combined federal and state marginal tax bracket is 28. Peter and to have set the following goals and assumptions: Income needed - readjustment periody) $77,750 Income needed dependency period 577750 Income weded "empty nest period 562.500 Income needed retirement 54750 Esime expenses and debts 315.000 dacation fund needed in today's dollars) SMOK.500 Investment assets (cash/cash equivalents) current S100,000 Expected Social Security income while children are under 16 $20,000 Expected Social Security income while children are 17 and 18 $15,000 Expected Social Security income in retirement SI8,000 Lois's life expectancy 90 years Lois's expects Social Security benefits to begin Ape 67 Discount Rate Calculate the amount of life insurance Peter needs based on the Human Life Value Method

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