Calculate the amount of life insurance linda

Assignment Help Finance Basics
Reference no: EM131772627

Linda and Jeff Carland are preparing to recieve their first child. With her anticipated complications of the delievery, Linda is getting very serious on buying a life insurance that would compensate the financial loss for her family for the next 25 years, if she were to die. In her desirable life insurance, she wants to factor in $50,000 educational fund for her newborn baby. She also wants to pay off the remaining $70,000 of their home mortgage, and gives Jeff a six-month leave from work so he can better adjust to life after her death. Linda also figures out that a minimum of $6,000 would be needed for her burial. Given that her annual disposable income is $25,000, Jeff's annual income is $27,000, her social security check would be $802.00 a month for 15 years, and her current universal life insurance would cover $75,000.

Based on the total loss estimation by the "Needs Approach" calculate the amount of life insurance Linda needs to buy, given that the interest rate is 9.5%

Reference no: EM131772627

Questions Cloud

Sample means for random samples of adults : Assume that the population average for adults is 6 hours and 57 minutes, or 6.95 hours of sleep per night, with a standard deviation of 2 hours.
Compute the cost of a single unit of product : Compute cost of a single unit of product under both the absorption costing and variable costing approaches. The Dean Company produces and sells a single product
How much would her balance be : She obtained this mortgage at annual interest of 4.5% for 30 years. How much would her balance be?
What is the total of these last five payments : She paid all the monthly payments except the last five payments, which she wants to pay all at once.
Calculate the amount of life insurance linda : Based on the total loss estimation by the "Needs Approach" calculate the amount of life insurance Linda needs to buy, given that the interest rate is 9.5%
Compute the machines internal rate of return : Compute the machine's internal rate of return. Would you recommend purchase of the machine
What proportion of days in typical years have rain : You are interested in knowing what proportion of days in typical years have rain or snow in the area where you live. For the months of January and February.
Value of your retirement plan after : Given a 6 percent interest rate, what is the value of your retirement plan after the 40 years?
Specify the population and the measurement of interest : Explain whether you think the Rule for Sample Means applies to each of the following situations. If it does apply, specify the population of interest.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain the similarities and differences of the two budgets

Write a description of how management should use an activity based budget instead of an operating budget

  What are advantage and disadvantage of establishing account

How could they benefit from a flexible spending account established through Mr. Bauldings employer? What are the advantages and disadvantages of establishing such an account?

  Determination of weighted average cost of capital

If your company aftertax cost of debt is 6 percent, the cost of preferred stock is 10%, and the cost of common stock is 11 percent, determine the Weighted Average Cost of Capital?

  Why is the roe a more appropriate proxy of wealth

why is the roe a more appropriate proxy of wealth maximization for smaller firms rather than for larger

  What is the current bond price

App Store Co. issued 15-year bonds one year ago at a coupon rate of 6.6 percent. The bonds make semiannual payments.

  You are working with a company selling building material to

you are working with a company selling building material to builders. you predict the quarterly purchases of customers

  Auerbach enterprises manufactures air conditioners for

auerbach enterprises manufactures air conditioners for automobiles and trucks manufactured throughout north america.

  What is the year-end 2012 balance in accounts

Mr. Husker's Tuxedos Corp. ended the year 2012 with an average collection period of 42 days. The firm's credit sales for 2012 were $57.1 million. What is the year-end 2012 balance in accounts receivable for Mr. Husker's Tuxedos?

  By how much does the required return on the riskier stock

stock r has a beta of 1.2 stock s has a beta of 0.85 the expected rate of return on an average stock is 10 and the

  What is the amount of dividends

Coca-Cola reports an increase in retained earnings of $2.2 billion and net income of $4.9 billion. What is the amount of dividends?

  Determine the requirements for trading

Determine the requirements for trading, including the price per trade. Compare and contrast the online trading companies.

  What measures are employed to evaluate performance

Assess the budgeting process and procedures for the organisation with regards to preparation techniques, uses for evaluation, differences between business units/divisions, etc.

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