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Trina is an account executive for a brokerage firm while Aaron has taken a couple years off from his profession as a civil engineer to
Trina is an account executive for a brokerage firm while Aaron has taken a couple years off from his profession as a civil engineer to work on an MBA degree. Right now, Aaron and Trina's budget is very tight, as they are accustomed to living on two incomes, but Trina's employer has just circulated employer benefit information, so Aaron and Trina believe this is a good time to evaluate their life insurance needs. They have listed the financial information they believe is relevant. Current life insurance Aaron $ Current life insurance Trina $ Assets available for living expenses Present value of Social Security benefits if Aaron dies $ Present value of Social Security benefits if Trina dies $ Aaron's income before he went back for the MBA $ Trina's income $ Percent of income that needs to be replaced percent Projected final expenses $ Projected readjustmentperiod needs $ Projected debtrepayment needs $ Projected collegeexpenses $ Number of years income replacement is needed Assumed rate of return on invested funds percent Appropriate interest rate factor Using the needsbased approach, how much additional life insurance is needed on Trina's life? a $ b $ c $ d $
Trina is an account executive for a brokerage firm while Aaron has taken a couple years off from his profession as a civil engineer to work on an MBA degree. Right now, Aaron and Trina's budget is very tight, as they are accustomed to living on two incomes, but Trina's employer has just circulated employer benefit information, so Aaron and Trina believe this is a good time to evaluate their life insurance needs. They have listed the financial information they believe is relevant.
Current life insurance Aaron
$
Current life insurance Trina
$
Assets available for living expenses
Present value of Social Security benefits if Aaron dies
$
Present value of Social Security benefits if Trina dies
$
Aaron's income before he went back for the MBA
$
Trina's income
$
Percent of income that needs to be replaced
percent
Projected final expenses
$
Projected readjustmentperiod needs
$
Projected debtrepayment needs
$
Projected collegeexpenses
$
Number of years income replacement is needed
Assumed rate of return on invested funds
percent
Appropriate interest rate factor
Using the needsbased approach, how much additional life insurance is needed on Trina's life?
a $
b $
c $
d $
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