Question: Joetta Hernandez is a single parent with two children and earns $66,800 a year. Her employer's group life insurance policy would pay 2.5 times her

Joetta Hernandez is a single parent with two children and earns $66,800 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $89,067 saved in a 401(k) plan, $7,422 in mutual funds, and a $4,453 certificate of deposit. She wants to purchase term life insurance for 15 years, until her youngest child is self-supporting. She is not concerned about her outstanding mortgage, as the children would live with her sister in the event of Joetta's death. Assuming she can receive a 4 percent after-tax, after-inflation return on insurance proceeds, use the earnings multiple method to calculate her insurance need. How much more insurance does Joetta need to buy? What other information would you need to know to use the needs approach to calculate Joetta's insurance coverage? Assuming she can receive a 4% after-tax, after-inflation return on insurance proceeds and using the earnings multiple method, Joetta's insurance need is $ enter your response here

Present Value of a Series of Annual Deposits (annuity), Present-Value Interest Factor of an Annuity n1%2%3%4%5%6%7%8%9%10% 10.9900.9800.9710.9620.9520.9430.9350.9260.9170.909 21.9701.9421.9131.8861.8591.8331.8081.7831.7591.736 32.9412.8842.8292.7752.7232.6732.6242.5772.5312.487 43.9023.8083.7173.6303.5463.4653.3873.3123.2403.170 54.8534.7134.5804.4524.3294.2124.1003.9933.8903.791 65.7955.6015.4175.2425.0764.9174.7674.6234.4864.355 76.7286.4726.2306.0025.7865.5825.3895.2065.0334.868 87.6527.3257.0206.7336.4636.2105.9715.7475.5355.335 98.5668.1627.7867.4357.1086.8026.5156.2475.9955.759 109.4718.9838.5308.1117.7227.3607.0246.7106.4186.145 1110.3689.7879.2538.7608.3067.8877.4997.1396.8056.495 1211.25510.5759.9549.3858.8638.3847.9437.5367.1616.814 1312.13411.34810.6359.9869.3948.8538.3587.9047.4877.103 1413.00412.10611.29610.5639.8999.2958.7458.2447.7867.367 1513.86512.84911.93811.11810.3809.7129.1088.5598.0617.606 1614.71813.57812.56111.65210.83810.1069.4478.8518.3137.824 1715.56214.29213.16612.16611.27410.4779.7639.1228.5448.022 1816.39814.99213.75412.65911.69010.82810.0599.3728.7568.201 1917.22615.67814.32413.13412.08511.15810.3369.6048.9508.365 2018.04616.35114.87713.59012.46211.47010.5949.8189.1298.514 2118.85717.01115.41514.02912.82111.76410.83610.0179.2928.649 2219.66017.65815.93714.45113.16312.04211.06110.2019.4428.772 2320.45618.29216.44414.85713.48912.30311.27210.3719.5808.883 2421.24318.91416.93615.24713.79912.55011.46910.5299.7078.985 2522.02319.52317.41315.62214.09412.78311.65410.6759.8239.077 3025.80822.39619.60017.29215.37213.76512.40911.25810.2749.427 4032.83527.35523.11519.79317.15915.04613.33211.92510.7579.779 5039.19631.42425.73021.48218.25615.76213.80112.23310.9629.915

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n 1 2 1.833 4 5 6 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 Present Value of an Annuity of $1 (PVIFA)...

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