How much life insurance should he buy

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

Questions Cloud

Find the magnitude and direction of the second piece : A fireworks rocket is launched vertically into the night sky with an initial speed of 40 m/s. find the magnitude and direction of the second piece

What is your initial research question : What is your initial research question and what do you feel to be the answer to this question, and why - what is the local issue that your argument and research address?

What is dybvigs cost of equity capital : If the risk-free rate is 4.50 percent and the expected return on the market is 12 percent, what is Dybvig's cost of equity capital?

What is the speed of the four cars after the collision : A railroad car of mass 2.58 104 kg is moving with a speed of 3.88 m/s. It collides and couples with three other coupled railroad cars, What is the speed of the four cars after the collision

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

What is the minimum angle of incidence : A plastic light pipe has an index of refraction of 1.49. For total internal reflection, what is the minimum angle of incidence if the pipe is in the following media

Determine the magnitude of the torque exerted on the dipole : An electric dipole has opposite charges of 5.0x10^-15 C separated by a distance of .40mm. It is oriented at 60 degrees with respect to a uniform electric field of magnitude 2.0x10^3 N/C. Determine the magnitude of the torque exerted on the dipole ..

Caculate how long does it take to boil a cup of water : A device for heating a cup of water in a car connects to the car's battery, which has an emf EMF = 10.0 V and an internal resistance r_int = 0.08 \Omega. The heating element that is immersed in the cup of water is a resistive coil with resistance ..

Which investment has the higher irr : You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10.5 million. Investment A will generate $2.03 million per year (starting at the end of the first year) in perpetuity.

User Account

All Pages