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Susan is a single parent with two children and earns $45,000 per year. She is purchasing term life insurance to replace 65% of her income

Susan is a single parent with two children and earns $45,000 per year. She is purchasing term life insurance to replace 65% of her income for 15 years, until her youngest child will be self supporting. Assuming her survivors can receive a 3% after-tax, inflation return on insurance proceeds, use the earnings multiple approach to calculate the face value of her policy.

$33,445

$349,245

$402,975

$56,668

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