You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $33,000 annually. You own a home with a $90,000 mortgage, and you owe $18,100 on car loans, $7,800 in personal debt and $3,800 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $8,500. Estimate your total insurance needs using the DINK method.
You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $33,000 annually. You own a home with a $90,000 mortgage, and you owe $18,100 on car loans, $7,800 in personal debt and $3,800 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $8,500. Estimate your total insurance needs using the DINK method.
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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![Problem 12-8 Estimating Life Insurance Needs Using the DINK Method [LO12-2]
You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $33,000
annually. You own a home with a $90,000 mortgage, and you owe $18,100 on car loans, $7,800 in personal debt,
and $3,800 in credit card loans. You have no other debt. You have no plans to increase the size of your family in
the near future. You estimate that funeral expenses will be $8,500. Estimate your total insurance needs using the
DINK method.
Total insurance need
$ 128,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbae71de7-550e-48ee-82e0-f5f82a206e21%2F4aebdebf-1f67-4388-be8a-96e4465c85f3%2Ftnc2fyo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 12-8 Estimating Life Insurance Needs Using the DINK Method [LO12-2]
You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $33,000
annually. You own a home with a $90,000 mortgage, and you owe $18,100 on car loans, $7,800 in personal debt,
and $3,800 in credit card loans. You have no other debt. You have no plans to increase the size of your family in
the near future. You estimate that funeral expenses will be $8,500. Estimate your total insurance needs using the
DINK method.
Total insurance need
$ 128,200
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