Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

تمرين 64

Alex Baron is evaluating his life insurance needs. His family's total living expenses are $39,800 per year. Carol, his wife, earns $23,000 per year in salary and receives an additional $4,000 per year in municipal bond interest. If the prevailing interest rate is currently 2.5%, how much life insurance should Alex purchase to cover his dependents' income shortfall
Total living expenses - $39,800
Total income = 23,000 + 4,000 = $27,000
Income shortfall = 39,800 27,000 = $12,800
Income shortfall 12,800