Business College

ASAP Please help and thank you!

Charles, age 45, would like to determine how much life insurance to purchase using the human life value approach. He assumes his average annual earnings will remain at $40,000. Of this amount, $20,912 is available annually for the support of his family. Charles will generate this income for 24 more years and he believes that 5.37 percent is the appropriate interest (discount) rate. What is Charles' human life value? (Round your answer to 2 decimal places)

Answers

Answer 1

Charles' human life value will be $249,200.

What is the process of calculating life value?

The process of calculation of life value in an insurance is that first of all determine the current income and than subtract the expense, premiums of insurance, and payment of income tax. The third step is recall the number of years of earning which are remaining before the age of retirement .The life value is an economic value which is used to judge the benefit for the reason of avoiding the rate of fatality.

The third step is recall the number of years of earning which are remaining before the age of retirement and than find the discounting factor rate including inflation.The life value is an economic value which is used to judge the benefit for the reason of avoiding the rate of fatality.

Therefore, Charles' human life value will be $249,200.

Learn more about life value here:

https://brainly.com/question/14298816

#SPJ1

Related Questions

Other Questions
A current carrying wire is placed vertically. the magnetic field around the wire is rotating clockwise around the wire. what direction is the current moving? Find the area of the figure. (Sides meet at right angles.)5 yd4 yd2 yd2 ydyd2 yd4 yd The research strategy that originated to study small-scale, relatively isolated societies with simple technologies and economies in order to understand the whole of a particular culture is known as:__________ Exercise 1 Draw one line under the simple subject. Draw two lines under the simple predicate. Draw a vertical line (|) between the complete subject and the complete predicate. The frisky squirrel leaped for the birdfeeder. What is the remainder when f(x) = x4 + 7x3 + 17x2 + 20x is divided by x2 + 4? a\large x^2+13x+7+\frac{-52}{x^2+4} b\large x^2+7x+\frac{13x-8}{x^2+4} c\large x^2+7x+13+\frac{5x-52}{x^2+4} d\large x^2+1+\frac{1}{x^2+4} Which of the following values is less than |62|? A ball is thrown directly downward with an initial speed of 7.95 m/s from a height of 30.6 m. after what time interval does it strike the ground? Which process is a change from gas to liquid?OA. FreezingB. MeltingOC. VaporizationOD. Condensation A qu llamamos parfrasis? The prediction that there is no relationship between the phenomena being studied is called the:_________ In the sentence, "Please hand me the comb," the word "me" is the _______.object complement predicate adjectiveindirect objectdirect objectIn the sentence, "The setting sun was a lovely shade of orange," the word "orange" is the ________.direct objectpredicate nominativeobject complementpredicate adjective Suppose that a single die with 6 sides (numbered 1, 2, 3, ... , 6) is rolled twice. what is the probability that the sum of the two rolls equals 5 ? When doing research to recommend a reasonable listing price for a home, the most critical part of the research deals with analyzing? geothermal,wind,and solar are some of the energy resources in which Nevada has an abundant supply.What would be a benefit of their usage compared to other energy sources Exercise 1 Write run-on next to each run-on sentence.The Pulitzer Prize is awarded each year, it awards excellence in journalism, letters, and music. Exercise 2 Rewrite the sentences below by inverting the order of the subjects and predicates. Across the sky twinkled the light of the satellite. The act of reducing taxes in ways that are legal and compatible with the intent of congress is called:________ The british opium monopoly in china was challenged in the ______ by opium imported from persia and cultivated in china itself. Margot draws a shape with one pair of parallel lines that are four centimeters apart. She then flips the shape across a horizontal line.How many pairs of parallel lines are in the flipped shape? There are many atoms of Hydrogen in the water on the planet. Do you think those atoms will still be inexistence a million years from now?