NO.PZ202109080500000103
问题如下:
Based on the data in Exhibits 1 and 2 and using the human life value method for determining life insurance needs, the additional amount of life insurance that Bradley should purchase is closest to:选项:
A.$1,701,345.00 B.$1,547,862.00 C.$1,951,345.00解释:
Solution
A is correct. The additional amount of life insurance Bradley should purchase using the human life value method is calculated as follows. The calculations assume (1) Bradley works for exactly 15 years and (2) his family needs the proceeds of the life insurance immediately upon his death.
Adjust the discount rate to account for the projected growth rate of earnings and expenses
Discount rate: 4%
Projected annual salary and expense increase for Bradley: 3%
-
Calculate the adjusted rate (i):
i = [(1 + Discount rate)/(1 + Growth rate)] – 1
= [(1 + 0.04)/(1 + 0.03)] – 1
= (1.04/1.03) – 1
= 1.0097 – 1
= 0.0097 = 0.97%
Determine the total amount of life insurance needed by calculating the present value of an annuity due in advance$139,063 × PVAADV(15 years, 0.97%) = $1,951,345
[Inputs on financial calculator (HP-12C): Mode: BEG; n: 15; i: 0.97; PMT: 139,063; FV: 0; calc PV]
Step 4: Less Bradley’s current life insurance coverage (from Exhibit 1)(250,000)
Additional life insurance required for Bradley$1,701,345
B is incorrect. The employer contribution to the defined-contribution retirement plan was not included in Step 1 of the calculation.
C is incorrect. The current $250,000 life insurance coverage was not deducted from the calculation of the total life insurance needed.
Bradley’s current life insurance coverage (250,000)。这个250,000从哪里看出来是BRADLEY的呢?