Jenny has an annual income of $50 000, debt of $20 000, and a factor of 10. How much insurance should she buy using the income method?

Name: Jenny has an annual income of $50 000, debt of $20 000, and a factor of 10. How much insurance should she buy using the income method?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Using the income method, Jenny should buy insurance coverage equal to:
Annual Income x Factor + Debt = Insurance Coverage
$50,000 x 10 + $20,000 = $520,000
Therefore, the best choice is D, which provides coverage of $500,000.

Jenny Has an Annual Income of $50 000, Debt of $20