Suppose that yours is a typical family. Your annual income is $55,000. Using the easy method, what should be your need for life insurance? (Do not round intermediate calculations.) Life insurance need $ 26,950
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- Problem 12-9 Estimating Life Insurance Needs Using the DINK Method [LO12-2] You are a dual-income, no-kids family. You and your spouse have the following debts: Mortgage = $260,000; Auto loan = $11,500; Credit card balance = $2,250; and other debts = $6,500. Further, you estimate that your funeral will cost $6,000. Your spouse expects to continue to work after your death. Using the DINK method, what should be your need for life insurance? Answer is complete but not entirely correct. Total insurance need $ 146,125 ×Problem 12-8 Estimating Life Insurance Needs Using the DINK Method [LO12-2] You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $25,000 annually. You own a home with a $140,000 mortgage, and you owe $14,000 on car loans, $4,800 in personal debt, and $3,500 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $7,000. Estimate your total insurance needs using the DINK method. Total insurance needHarvey Cook, 45, is a recently divorced father of two children, ages 10 and 7. He currently earns $95,000 a year as an operations manager for a utility company. The divorce settlement requires him to pay $1,500 a month in child support and $400 a month in alimony to his ex-wife. Harvey is now renting an apartment, and the divorce settlement left him with about $100,000 in savings and retirement benefits. His employer provides a $75,000 life insurance policy. Harvey’s ex-wife is currently the beneficiary listed on the policy. What advice would you give to Harvey? What factors should he consider in deciding whether to buy additional life insurance at this point in his life? If he does need additional life insurance, what type of policy or policies should he buy? Use Worksheet 8.1 to help answer these questions for Harvey.
- 10:21 Exploring Annuities [DIR... • Sheet 3- Time Comparison 1. At the bottom of the page, click on Sheet 3. If you're using Google Sheets, you can add a 3rd sheet. Rename it "Time Comparison". On this sheet, we're going to look at two individuals that are paying into annuities for their retirement fund. We want to attention to when eac. these paying into their annuity. 2. Type "Age - stats of saving" in cell A2. 3. Type "Payment Amount (P)" in cell A3. 4. Type "Rate (i)" in cell A4. 5. Type "Number of Payments per year (n)" in cell A5. 6. Type "Years to retire at 65 (t)" in cell A6. Again, find some reasonable values for payment amount, interest rate, and number of payments. 7. In cell B1, type "Tommy". Then enter his age, "45", in cell B2. 8. In cell C1, type "Sammy". Then enter his age, "25", in cell C2. a. NOTE: Pick whichever names you'd like. 9. Enter the amounts you chose for payment, rate, and frequency in cells B3 thru B5. These amounts should be the same for C3 thru CS. 10.…Problem 7-25 Low-Income Retirement Plan Contribution Credit (LO 7.9) George and Amal file a joint return in 2021 and have AGI of $38,200. They each make a $1,600 contribution to their respective IRAS. Assuming that they are not eligible for any other credits, what is the amount of their Saver's Credit?Problem 7.5. Fair value of annuity payments Mrs. Lata aged 35 wanted to purchase an annuity from a life insurance company The annuity would pay her Rs 70,000 until she lives. The insurance company expected that she would live for 35 more years and it would be willing to pay 8 percent on the annuity. How much should the insurance company ask Mrs. Lata to pay for the annuity?
- 12 What is the maximum monthly social security benefit a person can receive if retiring exactly 1 year after full retirement age in 2022? A. $3,613 B. $3,345 C. $3,500 D. $4,148 Additional information for this question: 2022 max monthly SS benefit is $4,194 (Age 70) 2022 max monthly SS benefit is $3,345 (Full Retirement Age) 2022 max monthly SS benefit is $2,364 (Age 62) Benefits are increased annually to account for inflation (Cost of Living Adjustments). 2011-2021 Average = 1.60% 2022 = 5.9%suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: O a. 4758.17 Ob. 4321.71 Oc. 466508.69 Od. None of the options O e. 3651.777. A net premium of $41 payable for life will provide (x) with either $5,000 n-year term insurance followed by $1,000 whole life insurance after age x + n, or $3,000 n-year term insurance followed by $2,000 whole life insurance after age x + n. What is 1000 · Px ? A) 17.37 B) 17.47 C) 17.57 D) 17.67 E) 17.77
- Question 13 You have a 401(k) plan, which is used for retirement savings, at work. If you plan to invest $5,000 at the end of every year for 35 years until you retire, which formula would you use to determine how much you will have when you retire? O future value of an annuity due O present value of a lump-sum future value of an ordinary annuity present value of an ordinary annuity future value of a lump-sum Question 14 You deposit $3,250 into a savings account at a local bank. It will pay you 1.25% compounded monthly for 2 years. To determine how much you will have at the end of that time, which formula would you use? future value of an annuity due O future value of a lump sum O present value of a lump-sum future value of an ordinary annuityWhat's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $90 per year? O a. 6.47% O b. 3.04% O c. 6.08% O d. 12.95% O e. 12.16%Question 8 of 11 > -/ 1 View Policies Current Attempt in Progress Kimberly and Matthew want to begin saving for their baby's college education. They estimate that they will need $139000 in eighteen years. If they are able to earn 3% per annum, how much must be deposited at the end of each of the next eighteen years to fund the education? O $6387. O $5937. O $9704. O $10107. eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer I!!