Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. amount of insurance needed. peter is married and h

Amount of Insurance Needed. Peter is married and has two children. He wants to be...

50.1K

Verified Solution

Question

Finance

image
Amount of Insurance Needed. Peter is married and has two children. He wants to be sure that he has sufficientife Insurance to take care of his family if he dies. Peter's wife is a homemaker but attends college part-timo pursuing a law degree. It will cost approximately 547,500 for her to finish her education. Because the chidron are teenagers, Peter feels he will only need to provide the family with income for the next ten years. He further calculates that the household expenses run approximately $44,900 per year excluding the mortgage payments. The balance on the home mortgage is $125,000. Peter set up a college fund for his children when they were babies, and it currently contains sufficient funds for them to attend college. Assuming that Peter's wife can invest the insurance proceeds at 7%, calculate the amount of insurance Peter needs to purchase. The amount of life insurance Peter would need to purchase is $(Round to the nearest dolar) Enter your answer in the answer box

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

In a recent research poll 83 4 of 500 randomly selected men in the U...

Advance Math
1.2K views

A toy manufacturing uses 48000 rubber wheels per year for its popular dump truck series. The...

Psychology
1.2K views

do you think that groups of people who already knew each other would demonstrate more or...

General Management
1.2K views

Over the past few weeks, you have become more familiar with your staff and are beginning...

Advance Math
1.2K views

Can someone please explain step by step the following solution. i am going to post the...

Geometry
1.2K views

Determine the volume the cylinder with a hemisphere scooped out of the top A 487...

Algebra
1.2K views

The function f x 2x 3 is graphed at the right What is the range...

Accounting
1.2K views

For a project with conventional cash flows what would be the effect on the IRR...

Accounting
1.2K views

6. From the following Balance Sheet of N Co. Ltd as on 31"...

Accounting
1.2K views

Salaries and Wages Expense Rent Expense Depreciation Expense Insurance Expense Utilities Expense Post the adjusting...

Accounting
1.2K views

Amy wants to take the next four years off work to travel around the world....

Finance
1.2K views

Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,...