life insurance to purchase us ue approach. He plans to retire at 67 and assumes his average annual we 000. Of the working earning, 60% will be consumed and 40% is available Family. Using interest råte of 4%, what is his human life value, round to nea
life insurance to purchase us ue approach. He plans to retire at 67 and assumes his average annual we 000. Of the working earning, 60% will be consumed and 40% is available Family. Using interest råte of 4%, what is his human life value, round to nea
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 19P
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![Hector, age 40, would like to determine how much life insurance to purchase using the human
life value approach. He plans to retire at 67 and assumes his average annual working eamings
is $80,000. Of the working earning, 60% will be consumed and 40% is available for the support
of his family Using interest rate of 4%, what is his human life value, round to nearest cents?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80d37885-bb7a-4034-af3b-6747d6f3b425%2F42848371-f5ea-4454-ba93-d126376b117f%2Ffov96n5_processed.png&w=3840&q=75)
Transcribed Image Text:Hector, age 40, would like to determine how much life insurance to purchase using the human
life value approach. He plans to retire at 67 and assumes his average annual working eamings
is $80,000. Of the working earning, 60% will be consumed and 40% is available for the support
of his family Using interest rate of 4%, what is his human life value, round to nearest cents?
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