Suppose you are a typical family.Your annual income is $60,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (use 7 years)

Question

Quizplus · Accepted Answer

The income replacement method suggests multiplying the annual income by the number of years you want to replace that income for. Here, $60,000 multiplied by 7 years equals $420,000. However, none of the options exactly match this calculation, suggesting a possible mistake in the question or answer choices. Given the closest options provided, $294,000 (B) is the closest to a typical calculation method but does not accurately reflect the described method's result.

Suppose You Are a Typical Family