Beverlyn Boo now needs advice on the total amount of protection required. She has provided you with
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Question:
Beverlyn Boo now needs advice on the total amount of protection required. She has provided you with the following information:
Monthly expense: $1,000
Monthly pay: $2,300 (Expected wage growth = 5%)
Current Assets: $10,000 cash
Inflation: 3%
Stock investment return: 6%
Years of protection: 20
(a) Compute the amount of protection based on the Expense and Liabilities method.
(b) Calculate the amount of protection based on the Income Based method.
(c) Assuming that Beverlyn invests her $10,000 in a stock that earns a return of 6%, compute the value of this investment in 20 years.
Related Book For
Statistics for the Life Sciences
ISBN: 978-0321989581
5th edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner
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