Adriana Is Financially Responsible for Her Aged Parents

Adriana is financially responsible for her aged parents.She wants to provide income for her parents for 15 years should she die.Adriana earns $48,000 after taxes and believes that her parents could live on 60 percent of her current income.If the insurance funds could be invested at 4 percent after taxes and inflation,how much life insurance does Adriana need? The approximate interest factor is 11.9.

A) $228,480
B) $342,720
C) $432,000
D) $571,200

Correct Answer:

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