Using the Earnings Multiple Approach Calculate How Much Life Insurance

Using the earnings multiple approach calculate how much life insurance Heather and Robert need to take out on Heather.She earns $80,000 and is 37 years old.They want coverage until she retires at age 67.Robert is sure he can get an annual rate of return on the policy settlement of 8%.They have no children.

A) $1,004,227
B) $997,553
C) $854,214
D) $630,417
E) None of the above

Correct Answer:

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