How much life insurance will you need to purchase

Assignment Help Accounting Basics
Reference no: EM133066257

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

Questions Cloud

Legislation in highly polarized environment : Perhaps the most fundamental role of Congress as an institution is legislating, but passing legislation in a highly polarized environment is very difficult.
What is the budgeted production for the year : The estimated January 1 inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. What is the budgeted production (in units) for the year
What is the research question or research gap : Discuss the references, and critically analyse them and discuss how they reflect the proposed topic. It should reflect theas information for each paper
What is the effective yield of this security : You also know that one year from now exchange rate will be at 1.34 $/£. What is the effective yield of this security if your client holds bond until maturity
How much life insurance will you need to purchase : 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
UFCFR5-15-3 Data Management Fundamentals Assignment : UFCFR5-15-3 Data Management Fundamentals Assignment Help and Solution, University of the West of England - Assessment Writing Service
What are the total return and the current yield : What are the total return, the current yield, and the capital gains yield for the discount bond in Question 3 at $878.00? At $1,134.20
Determine the target sales price : Leon Company is considering the production and sale of a new product with fixed costs of $32,000. Determine the target sales price
What is the estimated annual royalty fee : What is the estimated annual royalty fee that will be paid to Eatzy's should Neo decide to become a franchisee

Reviews

Write a Review

Accounting Basics Questions & Answers

  What amounts should be recorded as capital

What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership without a true up for the 50/50 profit and loss allocation?

  Record the conversion using the book value method

Bantry paid $11,000 to the bondholders to induce early conversion. Record the conversion using the book value method

  What was cost of goods manufactured

Assume the only inventory balance is an ending Finished Goods Inventory balance of $9,500. What was cost of goods manufactured

  A fertilizer manufacturing company wants to relocate to

a fertilizer manufacturing company wants to relocate to jones county. a report from a fired researcher at the company

  Johnson manufacturing incurs unit costs of 788 509 variable

johnson manufacturing incurs unit costs of 7.88 5.09 variable and 2.79 fixed in making a sub-assembly part for its

  Explain the standard when auditing inventory

Explain the standard when auditing inventory, whether you will be able to complete the audit & what facts need to be asked or examined.

  Identifying the accounts in the trial balance

Identify the two methods of recording inventory transactions and how you can differentiate between the two by identifying the accounts in the trial balance.

  The following items are reported on a companys balance sheet

The following items are reported on a company's balance sheet:

  What amount was received for the bonds

West Valley Corporation issues exist800,000 of 20-year, 9 percent bonds at 95. Interest is paid semi-annually, and the effective interest method.

  Morningside nursing homea not-for profit corporationis

morningside nursing homea not-for profit corporationis estimating its corporate cost of capital.its tax-exempt debt

  What will be the amount of current liabilities

Long Term Liabilities Rs. 50,000, net profit during the year Rs. 15,000 and amount of total liabilities is Rs 175,000. What the amount of Current Liabilities

  Gulick company developed the following data for the current

1.gulick company developed the following data for the current year beginning work in process inventory 160000 direct

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd