Allocation of assets at death to an emergency fund is intended to replace some of the financial flexibility thefamily enjoyed when the breadwinner was alive. If the client's monthly income is $5,000, then how large anemergency fund should the client normally plan for when doing insurance planning?⚫a. $5,000Ob. $10,000Oc. $75,000. d. $30,000

When planning for an emergency fund in the context of insurance planning, it's generally advised to…

Answered: Allocation of assets at death to an…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter12: Life Insurance Planning

Section: Chapter Questions

Problem 3DTM

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Lily Bobtail wishes to leave a provision in her will that $2 000 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 6% per annum? a. $33,333.33 b. $50,000 c. $40,000 d. $66,666.67
By the condition of a will, the sum of $ 2,000 is left to a girl to be held in trust fund by her guardian until it amounts to $ 5,000, when will the girl received the money if the fund is invested at 8% compounded quarterly? engineering econ
Mike had a $100,000 whole life insurance policy with a $10,000 loan outstanding when he died. The policy had a $20,000 cash value prior to the loan. How much will his beneficiary receive following Mike's death? a $110,000 b $100,000 c $30,000 d $90,000 e $120,000
How much money should a grandparent deposit in a college savings fund today for their newborn grandchild in order to provide for 4 uniform annual end of period withdrawals of $20,000 each? The first withdrawal occurs at the end of the 17th year. Use average amount return for the fund = 12% a. $8,847 b. $9,909 c. $11,098 d. $12, 418 Please use excel and show formulas.
Your grandparents would like to establish a trust fund that will pay you and your heirs $120,000 per year forever withthe first payment one year from today. If the trust fund earns an annual return of 2.3 percent, how much must yourgrandparents deposit today?Multiple Choicea. $5.217.391.30B. $4,347,826.09 C. $4,816,053.51D. $4,565,217.39E. $5.962.732.92
Using the Human Life Value Method, how much life insurance does Carl need? Family Share of Earnings 52,500 Current Age 30 Retirement Age 65 Rate of Return 7% Inflation 3% Final Expenses and Debt $50,000 Payments Approx. $850,000 O Approx. $950,000 О Аpprox. $1.05 Million O Approx. $1.5 Million
Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friend’s trust fund payments. Present value and future value tables: https://openstax.org/books/principles-managerial-accounting/pages/time-value-of-money
Your grandparents would like to establish a trust fund that will pay you and your heirs $185,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.6 percent, how much must your grandparents deposit today? Multiple Choice: $4,743,589.74 $4,282,407.41 $5,138,888.89 $4,496,527.78 $5,873,015.87
12) The life insurance fund at the beginning of the year is OMR 2,300,000. During the year outstanding interest on investment is OMR 10,000, bonus in reduction of premium is OMR 8,000 and reinsurance claim recoverable is OMR 7,000. Find the closing balance of life insurance fund after making the adjustments.
Based on the information above, how much should Sonny have in an emergency fund?
Evan had three accounts as listed below. In 2020, how much was his total insurance coverage by the FDIC? • Bank A: $110,000 Bank B: $80,000 • Bank C: $315,000 Multiple Choice O $110,000 $190,000 O $315,000
Emergency Fund Ratio reveals: Group of answer choices How readily a client would be able to meet all current obligations immediately A person's level of preparedness for job loss or short-term disability The level of debt that has been used to finance the present lifestyle The client's savings and spending patterns over a period of time.

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