Chris and Lisa have a newborn child and are shopping for life insurance. Chris earns $90000 a year and Lisa cares fo have a $370000 mortgage with 20 years remaining and are concerned if something were to happen to Chris, how t manage. If they wish to cover the family expenses until the child turns 20, approximately how much term insurance purchase? (Assume the expected annual return is 5%) O $1270000. Ⓒ $900000. O $751600. O $1121600.
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- Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways? Annually $_______ Quarterly $_________ Monthly $ _________Ana Maria's family would need $33,500 for annual living expenses if she should pass away. Her husband earns $15,100 per year and the family has additional yearly income of $12,000 from investments. If the prevailing interest rate is 13.3%, how much life insurance is needed to cover the family's income shortfall? (Round your answer to the nearest $1,000.) O $2,000 O $48,000 O $138,000 O $192,000Sharpy and Jane are saving for the college education of their newborn son, Kasuba. The couple estimate that college expenses will run K30,000 per year when their son reaches college in 18 years. The annual interest rate over the next few decades will be 14 percent.How much money must they deposit in the bank each year so that their son will be completely supported through four years of college? To simplify the calculations, assume that Kasuba is born today. His parents will make the first of his four annual tuition payments on his 18th birthday. They will make equal bank deposits on each of his first 17 birthdays, but no deposit at date 0.
- Liz and Bob just had a baby named Isabelle, and they want to save enough money for Isabelle to go to college. Assume that they start making monthly payments when Isabelle is 3 into an ordinary annuity earning 4.48%, and they calculate that they will need $25,200.00 by the time Isabelle turns 18. How much should they deposit every month so that they reach their goal? Deposit amount = Note: Your answer is a dollar amount and should include a dollar signAfter the birth of your first child, you decide to buy a life insurance policy for yourself but can't decide how much to buy. In the event of your untimely death, you estimate that the life insurance money can be invested in an account earning 8% interest compounded monthly. You would like your child to get a monthly payment of $1,500.00 for 18 years.How much should your life insurance policy be worth in order to achieve your goal? I should get a life insurance policy that is worth $_______Maryannis planning a wedding anniversary gift of a trip to Hawaiifor her husband at the end of 3years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a4percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways? a.Annually b.Quarterly c.Monthly
- Sharie is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways? a. Annually b. Quarterly c. MonthlyMaryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways? a. Annually b. Quarterly c. Monthly Using a financial calculatorAlfred Smith wants to purchase life insurance that will guarantee his family $50,000 (in R-dollars) per year in bond interest income forever. The interest rate (im) from corporate bonds is expected to pay 8% per year, and theinflation rate is expected to average 3% per year. How much life insurance should Alfred purchase to protect his family forever?
- Destiny invests $20,000 today into a retirement account. She expects to earn 7 percent, compounded annually, on her money for the next 30 years. After that, she wants to be more conservative, so only expects to earn 4 percent, compounded annually. How much money will she have in her account when she retires 40 years from now, assuming this is the only deposit he makes into the account? O $225,359.94 O $152.245.10 O $377,605.04 $299,489.16 O None of the answers is correctYour grandmother bought an annuity from Great-West Life Insurance Company for $361,220 when she retired. In exchange for the $361,220, Great-West will pay her $30,000 per year until she dies The interest rate is 6%. How long must she live after the day she retired to come out ahead (that is, to get more in value than what she paid in? -CHED She must live at least years. (Round up to the nearest whole year.)A couple will retire in 40 years; they paln to spend about $23,000 a retirement, which should last about 20 years. They believe that they can earn 9% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? b. How would the answer to part (a) change if the couple realizes that in 15 years they will need to spend $63,000 on their childs college education?