31. Carl's yearly income is $34,000. He has $250,000 in life insurance. Using the six-times-salary method, does Carl have enough life insurance? A. No, Carl needs another $36,000 in insurance. B. Yes, Carl has enough insurance by $36,000. C. No, Carl needs another $46,000 in insurance. D. Yes, Carl has enough insurance by $46,000.

31. Carl's yearly income is $34,000. He has $250,000 in life insurance. Using the six-times-salary method, does Carl have enough life insurance? A. No, Carl needs another $36,000 in insurance. B. Yes, Carl has enough insurance by $36,000. C. No, Carl needs another $46,000 in insurance. D. Yes, Carl has enough insurance by $46,000.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Dan is 65 and is retiring this year. He currently has $1 million in his account. Assume his life expectancy is 95 and the current interest rate is 9%. Dan wants to use up all the money before he dies. How much should he withdraw at the beginning of each month to cover his daily living expenses? A. $89,299.40 B. $7,986.33 C. $7,441.62 D. $8,046.23
Nikul
Alex wants to provide funding in the event of his death for his daughter Ellie, age 8, to attend four years of college, starting at age 18. The current annual cost of tuition is $20,000. Assume inflation of 6.5% and after-tax earnings of 7%. If Alex wants to have enough life insurance to assure adequate funds for Ellie when she begins college (should he die today), approximately how much insurance should he have for this need alone? (Round your answer to the nearest dollar.) A)$113,764 B)$75,806 C)$75,451 D)$79,441
Round all answers to the nearest cent. 1. Chris is 33 years old. He wants to retire when he is 60. When he retires, he wants to withdraw $1,900 a month from his retirement savings for 26 years. His retirement account earns 3.75% interest compounded monthly. a. What is the minimum amount he needs in his retirement account at age 60? b. How much must he deposit each month until he turns 60 to reach his goal? 2. Anya finds a new job at age 37. At her new job, she rolls over her retirement account which has accumulated $55,000. Her retirement account pays 3.33% compounded monthly. a. If Anya deposits $500 each month, how much will she have in the account when she retires at age 67?
Barry, age 45, works for an advertising company, where he earns $75,000. Barry would like to retire at age 65. He earns 9% on his investments, and inflation has averaged only 3% annually. Assuming he is expected to live until age 90 and he has a wage replacement ratio of 80% (in today's dollars), how much will Barry need to have accumulated when he retires to maintain his current lifestyle during retirement? A) $1,100,265 B) $2,322,382 C) $1,490,653 D) $1,863,311
An engineer is considering buying a life insurance policy for his family. He currently owes $65,000 and he would like his family to have an annual available income of $50,000 indefinitely. If the engineer assumes that any money from the insurance policy can be invested in an account paying a guaranteed 5% annual interest, how much life insurance should he buy? $1,000,000 $1,065,000 ● $2,000,000 $2,130,000
You and your spouse are in good health and have reasonably secure careers. Each of you makes about $40,000 annually. You own a home with an $80,000 mortgage, and you owe $15,000 on car loans, $5,000 on personal debts, and $4,000 on credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. Estimate your insurance needs using the DINK method. Show work!
You are the sole wage earner in a "typical family," with $102,000 gross annual income. Use the income replacement method to determine how much life insurance you should carry. (Omit the "$" sign In your response.) Value of Insurance $
Steven buys a disability policy with a $6,800 per-month benefit and a $1,565 per-month Social Security Rider. He finds out his Social Security monthly benefit will be $1,360 once the elimination period is over. How much will his disability policy pay him the eighth month of his disability?
Liam had an extension built onto his home. He financed it for 48 months with a loan at 4.3% APR. His monthly payments were $780. How much was the loan amount for this extension? A. $48,077 B. $54,945 C. $41,209 D. $34,341
PLEASE ANSWER. I WILL UPVOTE I PROMISE
Carlos's wife earns $17,600 per year. If Carlos dies, his family would require $51,900 to cover their living expenses. Some of the yearly expenses would be offset by $29,200 from stock dividends, but this is still not enough. How much insurance should Carlos have to cover the shortfall, given a 13.7% prevailing interest rate? O $3,000 O $37,000 O $74,000 O $250,000

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