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Alex, who is married and the father of four, is age 45 and expect to work...

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Accounting

Alex, who is married and the father of four, is age 45 andexpect to work to age 65. He earns $70,000 per year and expectsannual salary increases of 5%. Alex expects inflation to be 4% overhis working life. His personal consumption is earl to 10% of aftertax earnings, and his combined federal and state marginal taxbracket is 20%. Human Life Approach

(a) calculate the family’s share of earnings

(b) Calculate work life expectancy

(c) calculate the future value of the family’s share of earnings(FSE) over Alex’s work life expectancy (WLE)

(d) determine the human life value (HLV)

Financial Needs Approach

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Alex, who is married and the father of four, is age 45 andexpect to work to age 65. He earns $70,000 per year and expectsannual salary increases of 5%. Alex expects inflation to be 4% overhis working life. His personal consumption is earl to 10% of aftertax earnings, and his combined federal and state marginal taxbracket is 20%. Human Life Approach(a) calculate the family’s share of earnings(b) Calculate work life expectancy(c) calculate the future value of the family’s share of earnings(FSE) over Alex’s work life expectancy (WLE)(d) determine the human life value (HLV)Financial Needs Approach

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