William, age 45, would like to determine how much life insurance to purchase using the human life value approach. He assumes his average annual earnings over the next 20 years will be $80,000. Of this amount, $40,000 is available annually for the support of his family. William will generate this income for 20 more years and he believes that 5 percent is the appropriate interest (discount) rate. The present value of one dollar payable for 20 years at a discount rate of 5 percent is $12.46. What is William's human life value?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “William, age 45, would like to determine how much life insurance to purchase using the human life value approach. He assumes his average ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
One reason why gdp is not a good measure of national well-being is that it fails to take into account
Answers (1)
Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $8.00 per direct labor-hour.
Answers (1)
What sort of segmentation is a health club owner using when she markets her facility as a center for weight loss to some potential consumers, a place to socialize and meet like-minded people to other potential consumers, and a place for the whole
Answers (1)
Which of the following is an effective implementation of the information and communication component of COSO's Internal Control-Integrated Framework? a. The organization has one-way communication with parties external to the organization. b.
Answers (1)
You own a portfolio that is 22 percent invested in Stock X, 37 percent in Stock Y, and 41 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 percent, respectively.
Answers (1)
New Questions in Business
Some goods can be produced at low cost only if they are produced in large quantities. this phenomenon is called
Answers (1)
has sales of $15 million, total assets of $9 million, and total debt of $3.7 million. If the profit margin is 7 percent what is net income? What is ROE? What is ROA?
Answers (1)
The overall variability of a firm's returns depends on the expected return of each individual project, percentage of funds invested in each individual project, and correlation coefficient of returns between the investments.
Answers (1)
Luca writes a daily blog about why people should eat healthy foods and ways to eat healthfully. What are the purposes of his blog? to entertain and advertise to advertise and inform to argue and inform to argue and entertain
Answers (1)
Billy accepted a job at a company that specializes in providing money for short-term retail lending. where did he go to work?
Answers (1)