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What is the amount of life insurance necessary

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Stephanie, who is married and the mother of three, is 25 years old and expects to work until 70. She earns $45,000 per year. Stephanie expects inflation to be 3% over her working life, and the appropriate risk-free discount rate is 5%. Her personal consumption is equal to 25% of her after-tax earnings, and her combined federal and state marginal tax bracket is 15%. What is the amount of life insurance necessary for Stephanie using the Human Life Value method?

Reference no: EM132473493

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