Suppose that you earn $50,000 annually. You expect expenses to drop by 22% for your family in the event of your death
Currently, if you die, you want to provide for your family for at least 15 more years, and the applicable after-tax and inflation return assumed is 5%. Using the earnings multiple approach provided in your textbook, what would be the amount of life insurance that you should purchase?
A) $301,080
B) $404,820
C) $485,940
D) $500,000
E) 519,000
Answer: B
You might also like to view...
A realized gain or loss on the sale of an available-for-sale debt security is determined by comparing
A) the amortized cost of the security with the proceeds from the sale. B) the original cost of the security with the proceeds from the sale. C) the market value at the latest balance sheet date with the proceeds from the sale. D) the original cost with the security's carrying value.
The courts generally infer an intent to deceive from the fact that the defendant knowingly made a misstatement to a plaintiff who was likely to rely on it.
Answer the following statement true (T) or false (F)
A code of ethics becomes increasingly appropriate and necessary as a small business
A. expands its credit sales and acquires more customers who buy on credit. B. begins to market products in other countries. C. grows with a consequent lessening of personal interactions between the owner and employees. D. increases borrowing to the extent that one third of its assets are financed by borrowing.
Large certificates of deposit in units of $500,000 are insured by FDIC.?
Answer the following statement true (T) or false (F)