How much insurance would be needed in order to provide for a family for 20 years if the pretax income necessary to cover living expenses is $50,000 and the money can be invested at 6%?
A) $573,500
B) $1,000,000
C) $833,333
D) $2,100,000
Answer: A
Explanation: A) $50,000 × 11.47 (PVIFA, I = 6%, n = 20) = $573,500
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