Adriana is financially responsible for her aged parents. She wants to provide income for her pare...
Adriana is financially responsible for her aged parents. She wants to provide income for her parents for 15 years should she die. Adriana earns $80,000 after taxes . If the insurance funds could be invested at 4 percent after taxes and inflation, how much life insurance does Adriana need using the needs-based approach? The appropriate interest / present value factor is 11.9
Homework Answers
How much life insurance does Adriana need using the needs-based approach?
Adriana's Earnings = $80000
Life Insurance needed by Adriana = $80000 x 11.9 = $952000
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