How Much Insurance Would Be Needed in Order to Provide

question 90

Multiple Choice

How much insurance would be needed in order to provide for a family for 20 years if the pretax income necessary to cover living expenses is $50,000 and the money can be invested at 6%?

• A) $573,500
• B) $1,000,000
• C) $833,333
• D) $2,100,000

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Definitions:

Mixed Number

A number composed of an integer and a fraction, representing a value greater than or equal to one.

Spoken Aloud

Reading or saying words out loud.

Numerator

The top number in a fraction that shows how many parts of a whole are being considered.