You and your spouse just adopted twin girls, little Heather and Beth. You want to make sure they are taken care of for the next 22 years.  (A)Based on the following information, how much life insurance needs to be purchased for the husband using the income approach, if any?  (B) How much, if any, needs to be purchased for the wife using the income approach?   Assume 3% inflation rate.                Market Labor Value Household Production Value Husband $72,000 $15,000 Wife $15,000 $40,000

Q: A father wants to save in advance for his eight-year-old daughter's college expenses. The daughter…

A:

Q: If an investment of P24,500 twenty-four years ago is now worth P55,000, at what rate, compounded…

A: A=P(1+i/n)^nt A-Amount=55000 P-Principle=24500 n-compounding period=2 t=time=24 yrs…

Q: A city is initiating a sinking fund for development of a new landfill which will be constructed in…

A: Present Valuation of cost of  the project = 10,000,000 Rate of interest = 6% Inflation rate = 3%…

Q: The Consumer Price Index (CPI) increased from 300 to 400 over 15 years. What was the annual…

A: Here, it is given that the consumer price index changes over time and become 300 to 400 in last 15…

Q: Samantha receives a starting salary offer of $60,000 for Year 1. If inflation is 3% each year, what…

A: Time value of money: It refers to the present value of money which is more than the future value of…

Q: A series of four annual constant-dollar payments beginning with $50,000 at the end of the first year…

A: Given Information: The amount at the beggining= $50,000 Rate of interest at the end of 1st year =…

Q: SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month…

A: 3. The correct option is (d) The Slowdown phase From the above extract, the South African economy is…

Q: If you are looking for a 4% real return (inflation-free interest) on your investment, would you be…

A: The nominal interest rate can be calculated as follows: Thus, the nominal interest rate is 9.2%

Q: A friend is celebrating her birthday and wants to start saving for her anticipated retirement.  She…

A: Given ,  Years until retirement:     30 Amount to withdraw each year: $120,000 Years…

Q: Prices are increasing at an annual rate of 6% the first year and 10% the second year. Determine the…

A: Inflation refers to the increase in the general price level which increase due to many reasons like…

Q: You just signed a business consulting contract with one of your clients. The client will pay you…

A:

Q: The federal-level Pell Grant program provides financial aid to needy college students. The grant…

A: a. Initial value (IV) is $5,550. New value (NV) is $5,730. Time period (n) is 2. The average…

Q: Price of wine Price of coffee 2021 $5 $5 2022 $9 $6 Assuming that wine and coffee…

A: Inflation basically refers as the rate at which prices rise over time. Inflation is usually defined…

Q: man desires to have P3M money in his savings when he retires after 25 years. This has amount in the…

A: Future worth is the value of a assets at a particular date. It estimates the ostensible future…

Q: 1.23 The inflation rate is the.. a) Monthly percentage rate increase in the price of all goods and…

A: The price of goods and services changes over time. The price indexes measure the changes in the…

Q: Q1: (c) Your current salary is $60,000/year, your salary is increased every Year by 5% per year, and…

A: Inflation is the gradual increase in the price level over a certain time period. Inflation tends to…

Q: Given the following numbers for this economy, what is the inflation rate between year 4 and year 5…

A: A consumer price index is a price index, the price of a weighted average market basket of consumer…

Q: Problem 3: A series of four annual constant-dollar payments beginning with $15,000 at the end of the…

A: Given, Initial Payment- $15000 Growing rate-8% Interest- 13%

Q: A machine cost $2,550 on January 1, 2014, and $3,930 on January 1, 2018. The average inflation rate…

A: Answer- (b). 54.12%

Q: If the Consumer Price Index was 208.5 on January 1, 2010, and 10 years after it was 516.71. What was…

A: The CPI (consumer price index) refers as a tool which quantifies a change in the price level of the…

Q: Assume you take out a loan of worth $29,000 represents the market interest rate. If the average…

A:

Q: SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month…

A: In the given situation, it is said that inflation eased to 5.7% down from 5.9% the month prior. This…

Q: Question 4: (Effect of Inflation) If a small company invests 200,000 in a new production line…

A: Here we calculate the amount company receive with different interest rate by using the given…

Q: Your pension is $8,000 per month when you the next year, inflation is 1%. If your pension is indexed…

A: Inflation decreases our purchasing power so Pension income is increased to compensate for that. You…

Q: The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1 =…

A: A consumer price index measures changes in the price level of a weighted average market basket of…

Q: The American community surveys collects income information in the US in 2015 persons aged 25 and…

A: When you search for historical inflation rates in America, you'll find that the inflation rate for…

Q: Suppose that the year you were born your father gifted your mother a brand new Honda City car worth…

A: Inflation refers to the increase in general price levels in an economy from one period to another.…

Q: A man desires to have a preplanned amount in a savings account when he retires in 20 years. This…

A: Given information: Time period = 20 years Desired money = $30000 Inflation rate = 7% Interest rate =…

Q: The price of gold (end-of-year closing price in dollars per troy ounce) is shown in the table below.…

A: The following problem has been solved as follows:

Q: he inflation over four consecutive quarter is fl=1%,f2=0.5%, fs-0.5%, f-196. what is the inflation…

A: Here, we calculate the given as follow;

Q: Ten years ago, an item cost $2,500. The rate of inflation for the first 4 years was 4%, during the…

A: Inflation refers to an increase in the general price levels in an economy from one period to…

Q: A father wants to save in advance for his eight-year-old daughter's collegeexpenses. The daughter…

A: Interest rate per quarter can be calculated as follows:

Q: The inflation rate over a 10-year period for an item that now costs $1000 is shown in the following…

A: a) Cost at the end of the year 10:   Y5=1000×(11+10%)5 =1000×0.620=z$620 This shows that at the end…

Q: You just signed a business consulting contract with one of your clients. The client will pay you…

A: here we calculate present worth using the constant dollar analysis is calculated using the inflation…

Q: SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month…

A: Inflation: Inflation is a term used in economics to describe an increase in the overall price level…

Q: 2a, In 2000, the value of the Consumer Price Index was 171.20 and the price of gasoline (per gallon)…

A: In order to find the general inflation rate, we will find percentage change in the consumer price…

Q: In​ 1923, a certain country underwent one of the worst periods in history of​ hyperinflation, which…

A: Given monthly inflation rate = 34,000%

Q: SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month…

A: Inflation focuses on the quantitative measure of the rate at which the prices of specific goods and…

Q: Year | price of meat | price of bread (per Kg price of gas (per lt) housing price (monthly rent of 1…

A: Given:- Basket consist= 40 kg meat, 50 kg bread, 400 It gas. To calculate:- Inflation rate based on…

Q: Shelia earns $12.00 per hour. During her performance review, her boss gave her a $0.35 raise. Is…

A: Given wage = 12 $ per hour increment in wage = 0.35 $ Therefore Percentage growth in wage = 0.35/12…

Q: Company A recently bought software licenses for $100,000 for the first year, renewable each year for…

A: Given: License cost=$100000 Inflation rate for next 3 years=3% Inflation rate for 5th year=5% To…

Q: Jeff just received a refund of $2,178 from his family physician. This was anoverpayment on his…

A: Future worth can be calculated as follows:…

Q: The bank is paying 7.11% compounded annually. The inflation is expected to be 3.59% per year. What…

A: Here, bank rate is given as 7.11% that is compounded annually and people are expecting an inflation…

Q: 52. Retirees have their benefits adjusted annually by the to compensate them for inflation. A. wage…

A: Inflation is the rate at which prices rise over a specific time period. Inflation is often defined…

Q: A barrel of oil has a current cost of $100/barrel. If general inflation is 2.5%/ year and oil has a…

A: It is given that the current cost of a barrel of oil is $100 and the general inflation rate is 2.5…