Vincent, aged 35, is working in an accountancy firm in Country A. His estimated average life time annual salary is $800,000 which is subject to 15% tax rate. Out of his average annually salary, he estimates that 25% will be used for self-maintenance and 8% for life insurance premium. The remaining amount is used to support his family. He plans to retire at the age of 65. Assume the discount rate is 5% p.a., apply the Human Life Value Approach to estimate the current value of Vincents life to his family.

Q1 What is Vincents average annual income to support his family?

Q2 What is the closest present value of the annuity factor per dollar?

Q3 What is the closest Human Life Value of Vincent?