Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
QUESTION 4 Using the Human Life Value method, how much life insurance should you purchase if you take into account 3% annual inflation over the
QUESTION 4
Using the "Human Life Value" method, how much life insurance should you purchase if you take into account 3% annual inflation over the next 45 years until retirement, an annual income of $61,500 received at the start of each years, and a time value of money of 7%? (Assume 100% income replacement and a marginal tax rate of 15%)
| a. | $1,236,658 | |
| b. | $1,272,027 | |
| c. | $1,588,959.94 | |
| d. | $1,545,823 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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