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QUESTION 2 Using the Desired Income method, if you want to provide your survivors with a nominal annual income of $55,000 at the beginning of

QUESTION 2

Using the "Desired Income" method, if you want to provide your survivors with a nominal annual income of $55,000 at the beginning of each year, how much life insurance is needed assuming your survivors can earn 7% interest annually? Assume a combined tax rate of 22%.

a.
$268,817

b.
$1,007,326

c.
$250,000

d.
$785,714

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