Pete's wife earns $37,400 per year. If Pete dies, his family would require $56,700 to cover their living expenses. Some of the yearly expenses would be offset by $2,400 from stock dividends, but this is still not enough. How much insurance should Pete have to cover the shortfall, given a 13.1% prevailing interest rate? (Round to nearest $1,000)

Question

Quizplus · Accepted Answer

The Answer of Pete's wife earns $37,400 per year. If Pete dies, his family would require $56,700 to cover their living expenses. Some of the yearly expenses would be offset by $2,400 from stock dividends, but this is still not enough. How much insurance should Pete have to cover the shortfall, given a 13.1% prevailing interest rate? (Round to nearest $1,000)

Pete's Wife Earns $37,400 Per Year