Q: You are the wage earner in a “typical family,” with
You are the wage earner in a “typical family,” with $58,000 gross annual income. Use the easy method to determine how much insurance you should carry. (LO10.1)
See AnswerQ: Your variable annuity charges administrative fees at an annual rate of 0
Your variable annuity charges administrative fees at an annual rate of 0.15 percent of account value. Your average account value during the year is $200,000. What is the administrative fee for the y...
See AnswerQ: Sophia purchased a variable annuity contract with a $25,000
Sophia purchased a variable annuity contract with a $25,000 purchase payment. Surrender charges begin with 7 percent in the first year, and decline by 1 percent each year. In addition, Sophia can wi...
See AnswerQ: Shelly’s variable annuity has a mortality and expense risk charge at an
Shelly’s variable annuity has a mortality and expense risk charge at an annual rate of 1.25 percent of account value. Her account value during the year is $50,000. What was Shelly’s mortality and ex...
See AnswerQ: You and your spouse are in good health and have reasonably secure
You and your spouse are in good health and have reasonably secure careers. Each of you makes about $55,000 annually. You own a condominium with an $120,000 mortgage, and you owe $15,000 on car loans...
See AnswerQ: Shaan and Anita are married and have two children, ages 4
Shaan and Anita are married and have two children, ages 4 and 7. Anita is a “nonworking” spouse who devotes all of her time to household activities. Estimate how much life insurance Shaan and Anita...
See AnswerQ: Use the Figure It Out worksheet in this chapter to calculate your
Use the Figure It Out worksheet in this chapter to calculate your own life insurance needs. (LO10.1)
See AnswerQ: Use Exhibit 10-1 to find the average number of additional
Use Exhibit 10-1 to find the average number of additional years a 25-year-old male and female are expected to live, based on the statistics gathered by the U.S. government as of 2017 (LO10.1)
See AnswerQ: Mark and Parveen are the parents of three young children. Mark
Mark and Parveen are the parents of three young children. Mark is a store manager in a local supermarket. His gross salary is $75,000 per year. Parveen is a full time stay-at-home mom. Use the eas...
See AnswerQ: You are a dual income, no-kids family. You
You are a dual income, no-kids family. You and your spouse have the following debts (total): mortgage, $200,000; auto loan, $10,000; credit card balance, $4,000; and other debts of $10,000. Further,...
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