Figure 12-1
Antonio and Trina are a young couple with two small children,Jason (age four) and Claudia (age two) .Trina is an account executive for a brokerage firm while Antonio has taken a couple years off from his profession as a civil engineer to work on an MBA degree.Right now Antonio and Trina's budget is very tight,as they are accustomed to living on two incomes,but Trina's employer has just circulated employer benefit information,so Antonio and Trina believe this is a good time to evaluate their life insurance needs.They have listed the financial information they believe is relevant.

-Refer to Figure 12-1.How much additional life insurance is needed on Antonio's life using his former income and the 7-year multiple-of-earnings approach?
A) $562,500
B) $487,500
C) $315,000
D) $270,000
Correct Answer:
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