Alice and Tommy Have 3 Dependent Children

question 122

Multiple Choice

Alice and Tommy have 3 dependent children.Alice earns $125,000 per year.They are taking out insurance on Alice for the next 30 years.Tommy expects to get a 9.25% rate of return on the life insurance payoff.Using the earnings multiple approach calculate how much life insurance they need to take out on Alice.

• A)$987,440
• B)$1,005,011
• C)$1,105,447
• D)$2,228,553
• E)None of the above

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Definitions:

Strange Situation

A research method developed by psychologist Mary Ainsworth to assess attachment styles in young children by observing their reactions to being separated and reunited with their caregivers.

Attachment

An emotional bond that forms between individuals, crucial for personal development and influencing relationships throughout life.

Caregiver

An individual who provides care for another person who is unable to care for themselves due to illness, disability, or age.

Socioemotional Development

The process of developing the ability to understand and manage emotions, along with forming relationships and social skills.