Question $4$

$2$ pts

Using the following to answer question $4$ and $5.$ You have $10$ years until retirement, an annual income of $$40,000,$ and an after$-$tax rate of return of $5\%.$ You want life insurance to replace $70\%$ of your annual income if you die for your family Assume an inflation rate of $2\%.$

What is your real rate of return?

$3\mathrm{.}00\%$

$6\mathrm{.}14\%$

$2\mathrm{.}19\%$

$2\mathrm{.}94\%$

$\backslash$table$[[$Question $5],[$Based on your answer from question $4,$ how much life insurance do you need to purchase$],[$under desired income method?$],[$$$952,380\mathrm{.}95$