Mathematics, 11.07.2021 21:50 sierravick123owr441
Peter is married and has two children. He wants to be sure that he has sufficient life insurance to take care of his family if he dies. Peter’s wife is a homemaker but attends college part-time pursuing a law degree. It will cost approximately $40,000 for her to finish her education. Since the children are teenagers, Peter feels he will only need to provide the family with income for the next 10 years. He further calculates that the household expenses run approximately $35,000 per year. The balance on the home mortgage is $30,000. Peter set up a college fund for his children when they were babies, and it currently contains sufficient funds for them to attend college. Assuming that Peter’s wife can invest the insurance proceeds at 8%, calculate the amount of insurance Peter needs to purchase.
Answers: 2
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