Using the information provided in the previous question, Ms. Maryanne To is uncertain as to whether the 25 year term will be sufficient to meet the financial needs of her dependants given that her youngest daughter has a disability.
a) Calculate the life insurance cover required (to the nearest $'000) assuming that the payments would continue indefinitely and that Maryanne's financial dependants would withdraw their income requirements on an annual basis in arrears after receiving an initial payment of $100,000 upon her death.
b) What difference would it make to your calculations in part a) of this question if the earnings rate was increased to 8%? Why would such difference be expected?

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The Answer of Using the information provided in the previous question, Ms. Maryanne To is uncertain as to whether the 25 year term will be sufficient to meet the financial needs of her dependants given that her youngest daughter has a disability.
a) Calculate the life insurance cover required (to the nearest $'000) assuming that the payments would continue indefinitely and that Maryanne's financial dependants would withdraw their income requirements on an annual basis in arrears after receiving an initial payment of $100,000 upon her death.
b) What difference would it make to your calculations in part a) of this question if the earnings rate was increased to 8%? Why would such difference be expected?

Using the Information Provided in the Previous Question, Ms