How much life insurance should he buy

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Reference no: EM13260982

Just before his first attempt at sky diving, Peter decides to buy a life insurance policy.

His annual income at age 30 is $39,000, so he figures he should get enough insurance to provide his wife and kids with that amount each year for the next 35 years. If the long-term interest rate is 6.4%, what is the present value of Peter's future annual earnings?

And then rounding up to the next $50,000 how much life insurance should he buy?

Reference no: EM13260982

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