Angelica is evaluating her life insurance needs. She wants her husband to have $50,000 of additional income, paid at the beginning of each year, for 20 years after her death. She wants to use up the entire amount of principal and interest during that period. Angelica expects a 3% inflation and 7% net interest on savings, and wants the income to be adjusted annually for inflation. Assuming she dies today, how much additional life insurance is required to fund this need? A) $679,516 B) $686,581 C) $706,697 D) $713,244

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To calculate the additional life insurance needed to fund Angelicas desired income for her husband a... View the full answer