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How do you get 2.39% for the real rate of interest? When I do the...

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Finance

How do you get 2.39% for the real rate of interest? When I do the equation, I keep getting 5.27%image

Using the "Desired Income" method, how much insurance would be needed if you want to provide your survisors with a real annual income of $55,000 at the beginning of each year? (Assume a before-tax rate of return of 7%, a marginal tax rate of 22%, and annual inflation rate of 3% per year) Expert Answer o bjmailster answered this 2,703 answers Was this answer helpful? 2 After tax return- Real rate of interest: Life Insurance needed: 5.46%-0.07*(1-022) 2.39%-((100%+C3)/(100%+3%)-1 4 55000/C4 5 2302846

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