Question
What would be the amount of life insurance necessary for the client below (in Q10) if we were to use the capitalization of earnings method?
What would be the amount of life insurance necessary for the client below (in Q10) if we were to use the capitalization of earnings method? (Hint: Use 4 decimals for the inflation-adjusted rate (if in % form). When in decimal form, use 6 decimals (e.g., 2.1234% is .021234))
a $855,598
b. $900,000
c. $1,500,000
d. $1,477,442
DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION
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The Wall Street Mba
Authors: Reuben Advani
2nd Edition
007178831X, 9780071788311
