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How much life insurance will you need to purchase

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Question - You have 25 years until retirement and your current annual income is $75,000. Using a marginal tax rate of 22% and an inflation rate of 3.5%, how much life insurance will you need to purchase using the "human life value" approach? Your time value of money of 8.5%.  Assume you want to replace 80% of your current income considering taxes and inflation. 

A. $1,225,325.67

B. $807,431.69

C. $963,343.12

D. $1,073,493.61

Reference no: EM133066257

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