Patrick's monthly take-home pay is $5,000.His net worth is $125,000.He estimated that he would receive Social Security benefits worth $1,000 and company disability benefits $2,000 if he becomes disabled.The additional disability benefits that he needs to arrange for equals _____.

Question

Quizplus · Accepted Answer

To calculate the additional disability benefits Patrick would need, we need to first determine his current monthly income.

Take-home pay: $5,000
Social Security benefits: $1,000
Company disability benefits: $2,000

Total monthly income: $8,000

This is the amount of income he would need to replace if he became disabled.

To calculate how much additional disability benefits he would need to arrange for, we can subtract his current monthly income from the total amount he would need to replace:

$8,000 - $5,000 - $1,000 - $2,000 = $2,000

Therefore, Patrick needs to arrange for an additional $2,000 in disability benefits.

The correct answer is B.

Patrick's Monthly Take-Home Pay Is $5,000