Question: Question 1 : Mr . A , age 4 0 , is married with one child. He estimates that his average annual earnings will be

Question 1:
Mr. A, age 40, is married with one child. He estimates that his average annual earnings will be $90,000. He estimates that 1/4 of his annual income will be used to pay taxes, 1/6 will be used to pay insurance premiums and other costs of self-maintenance. The remainder will be used to help his family. Mr. A believes that a 7% discount rate is appropriate. He plans to retire at 65 years old. Calculate Mr. As human life value.

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