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 detes. Mack earns $$64,000$ per year, and Amy earns $$76,000.$ Each has a retirement plan valued at approxirnately $$15,000.$ They recently received an offer in the mail from their mortgage lender for at least five years if one of them should die.

a$.$ Assuming $$10,000$ in final expenses and $$20,000$ allocated to help make mortgape payments, calculate the amount of life insurance they should purclase usang the neents bused apposh. Also assume that boih Mack and Amy would replace $75$ percent of their individual current income for five years. Use a $6$ percent after$-$tax, after$-$nflation rate of retim for your caliculations. $($Use Appendix B$.)$ Do not round your intermediate calculations. Round your answers to the nearest dallar.

Life insurance needed $($Mack$)$: $5$

Life insurance needed $($Amy$)$: $