In personal risk evaluation and the decision of how much insurance to purchase, one important consideration...

 

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In personal risk evaluation and the decision of how much insurance to purchase, one important consideration is the current and future earnings. In homework assignment 2, you will try to find the present value of your future earnings at graduation. . . Assume retirement at age 62, no gaps for unemployment, disability Use current return on 10-yr Treasury bonds as discount rate . . If you are a graduating senior and have already accepted a job offer upon graduation, use that salary as your starting point Finance students will need to identify an appropriate salary survey or other source of information about both entry-level salaries and typical career progression. Document the assumptions you make to generate a lifetime of earnings. Identify and document any other assumptions that you need to make. In personal risk evaluation and the decision of how much insurance to purchase, one important consideration is the current and future earnings. In homework assignment 2, you will try to find the present value of your future earnings at graduation. . . Assume retirement at age 62, no gaps for unemployment, disability Use current return on 10-yr Treasury bonds as discount rate . . If you are a graduating senior and have already accepted a job offer upon graduation, use that salary as your starting point Finance students will need to identify an appropriate salary survey or other source of information about both entry-level salaries and typical career progression. Document the assumptions you make to generate a lifetime of earnings. Identify and document any other assumptions that you need to make.

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Present Value of Future Earnings Calculation Finding the present value of your future earnings can help you make informed decisions about insurance ne... View the full answer