You have a gross annual income of $62,500. Use the multiple of income method to determine the minimum amount of lifeinsurance you should carry.Answer is complete but not entirely correct.Minimum insurance need$ 437,500 x

Given that,Gross annual income To find the minimum amount of life insurance.

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Finance

> Answer is complete but not entirely correct. Minimum insurance need $ 437,500 x

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter5: Deductions For And From Agi

Section: Chapter Questions

Problem 18MCQ

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Concept explainers

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.

Question

You have a gross annual income of $62,500. Use the multiple of income method to determine the minimum amount of life
insurance you should carry.
Answer is complete but not entirely correct.
Minimum insurance need
$ 437,500 x

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