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  3. drop down: 1) $41,250; $55,000; $68,750; $96,250

drop down: 1) $41,250; $55,000; $68,750; $96,250 2) discounted; compounded 3) 4%, 5%,...

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Accounting

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drop down:
1) $41,250; $55,000; $68,750; $96,250
2) discounted; compounded
3) 4%, 5%, 7%, 8%
5) 25, 18, 35, 30
6)$845,488; $551,616; $634,216; $510,366
1. Apply What You've Learned - Life Insurance Planning Scenario: You are 30 years old with a gross annual income of $55,000. You are married with 2-year-old twin children. Your spouse is 30 years of age. You estimate that your final expenses for funeral, burial, and other expenses will be $15,000. You currently owe $185,000 on a mortgage, $25,000 on a car loan, and $20,000 in credit card debt. You would like to replace your income for 30 years, and believe that your insurance proceeds can be invested to earn a 5% return. You would also like a minimum of $60,000 for each child be placed in a college fund. You do not anticipate a need to fund a readjustment period for your spouse. You currently have a $80,000 whole life insurance policy Therefore, your replacement-income requirement should be based on a base annual income of per year. These expected future amounts should be at a rate of for years. This produces a total estimated replacement Income of (Hint: The appropriate annuity interest factor is 15.3725.)

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