Check My Work Do the Math 12-2 Life Insurance Needs for a Young Married Couple Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,000 using a $190,000 mortgage. They have no other debts. Mack earns $62,000 per year, and Amy earns $70,000. Each has a retirement plan valued at approximately $16,000. They recently received an offer in the mail from their mortgage lender for a mortgage life insurance policy of $190,000. Their only life insurance currently is a $25,000 cash-value survivorship joint life policy. They each would like to provide the other with support for at least ve years if one of them should die. a. Assuming $13,000 in nal expenses and $20,000 allocated to help make mortgage payments, calculate the amount of life insurance they should purchase using the needs-based approach. Also assume that both Mack and Amy would replace 75 percent of their individual current income for ve years. Use a 4 percent after-tax, after-inflation rate of return for your calculations. (Use Appendix B.) Do not round your intermediate calculations. Round your answers to the nearest dollar. Life insurance needed (Mack): $ Life insurance needed (Amy): $ b. How would their needs change if Amy became pregnant? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank Check Mv Work