After taxes, Xue clears $6,400 in income each month. Her mortgage is currently $350,000 and her...

 

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After taxes, Xue clears $6,400 in income each month. Her mortgage is currently $350,000 and her monthly mortgage payment is $2.200. Xue has decided to purchase life insurance and she asks her insurance agent, Cinzia, to determine the appropriate amount, accounting for inflation. Assuming an annual investment return of 4.5% and an average annual rate of inflation of 2.5%, what is the approximate amount of life insurance Xue needs using the income replacement approach? $1 million 18 Oa) Ob) $2 million Oc) Od) $3 million $4 million 18888 After taxes, Xue clears $6,400 in income each month. Her mortgage is currently $350,000 and her monthly mortgage payment is $2.200. Xue has decided to purchase life insurance and she asks her insurance agent, Cinzia, to determine the appropriate amount, accounting for inflation. Assuming an annual investment return of 4.5% and an average annual rate of inflation of 2.5%, what is the approximate amount of life insurance Xue needs using the income replacement approach? $1 million 18 Oa) Ob) $2 million Oc) Od) $3 million $4 million 18888

Answer rating: 100% (QA)

Option d is correct 4 million monthly income 6400 mortgage 2200 remaining ... View the full answer