Suppose that you earn $50,000 annually. You expect expenses to drop by 22% for your family in the event of your death
Currently, if you die, you want to provide for your family for at least 15 more years, and the applicable after-tax and inflation return assumed is 5%. Using the earnings multiple approach provided in your textbook, what would be the amount of life insurance that you should purchase?
A) $301,080
B) $404,820
C) $485,940
D) $500,000
E) 519,000
Answer: B
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If the amount of a loan is $13,500 and the interest rate is 6 percent what is the amount of the semiannual interest payment?
A) $596.55 B) $405.00 C) $810.00 D) $202.50
A tract of land in a recreational area is measured at 395,340 square feet. A corner of the tract, 30 feet wide and 110 feet deep, is owned by the county. The privately owned land sold for $1,250 per acre. What was the total amount realized from the sale:
A: $1,250; B: $6,250; C: $9,375; D: $11,250.