An example of an annuity is the interest received from bonds

Assets you own, including such items as stocks, bonds, or real estate, are commonly termed

A) capital assets. B) monetary assets. C) current assets. D) intangible assets.

Alice and Tommy have 3 dependent children. Alice earns $125,000 per year. They are taking out insurance on Alice for the next 30 years. Tommy expects to get a 9.25% rate of return on the life insurance payoff

Using the earnings multiple approach calculate how much life insurance they need to take out on Alice. A) $987,440 B) $1,005,011 C) $1,105,447 D) $2,228,553 E) None of the above