Brad Earns $50,000 Per Year as a Manufacturer's Rep and His

question 33

Essay

Brad earns $50,000 per year as a manufacturer's rep and his wife,Nancy,earns $100,000 per year as an Oncologist.When they had children,Nancy left her practice to become a full-time mother.The family's expenses are $35,000 per year,which includes an amount being saved for the children's college education.Brad and Nancy have two children,ages 2 and 5.They receive an average return of 6 percent on their investments.Nancy has retained her active medical license and plans to return to work full-time when the children enter school.Using the budget method,how much life insurance should the family have in the event of Brad's death?
(a)$344,100
(b)$573,500
(c)$1,147,000
(d)Zero

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Definitions:

Argumentum Ad Baculum

A logical fallacy or argument that uses the threat of force or intimidation to persuade or ensure compliance, essentially an appeal to force.

Argumentum Ad Hominem

A logical fallacy where an argument is rebutted by attacking the character, motive, or other attributes of the person making the argument, rather than addressing the substance of the argument itself.

Reductio Ad Absurdum

A method of argumentation that seeks to disprove a statement by showing it leads to an absurd or contradictory conclusion.

Non Sequitur

A statement that does not logically relate to what comes before it, often used to denote illogical or irrelevant conclusions.