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  3. 1. richard, age 45, is marr ied with two children

1. Richard, age 45, is marr ied with two children in high school. He estimates...

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Accounting

1. Richard, age 45, is marr ied with two children in high school. He estimates that his average annual earnings over the next 20 years will be $60,000. He estimates that one-third of his average annual earnings will be used to pay taxes, insurance premiums, and the costs of self-maintenance. The remainder will be used to support his family. Richard wants to calculate his human life value and believes a 6 percent discount rate is appropriate. The present value of $1 payable for 20 years at a discount rate of 6 percent is $11.47. Calculate Richard's human life value.

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