Peter is married and has two children. He wants to be sure that he has sufficient life insurance to take care of his family if he dies. Peter’s wife is a homemaker but attends college part-time pursuing a law degree. It will cost approximately $40,000 for her to finish her education. Since the children are teenagers, Peter feels he will only need to provide the family with income for the next 10 years. He further calculates that the household expenses run approximately $35,000 per year. The balance on the home mortgage is $30,000. Peter set up a college fund for his children when they were babies, and it currently contains sufficient funds for them to attend college. Assuming that Peter’s wife can invest the insurance proceeds at 8%, calculate the amount of insurance Peter needs to purchase.

$304,853

Step-by-step explanation:

Given:

I - 8

N - 10

PMT - 35,000

FV - 0

solution :

We use the Budget method to estimate the amount of insurance needed

PV of annual expenses

=PV(8%,10,-33100) considering Rate=8%, N=10

 PV - ? = $337,501.61

Amount of Insurance to Purchase = $234,853 + $40,000 + $30,000 = $304,853

answer: 370

step-by-step explanation:

remember use pemdas! there are no parentheses or exponents so lets move onto the first part of the equation: multiplication and division. first, lets break the first part of the equation up into something easier using the distributive property. 28 * 12= (20 *12) + (8*12) you know that 20*12 is 240 and 8*12 is 96. add them and you get 336. then, lets solve the last part of the equation (the last part of pemdas is addition and subtraction). 336 plus 34 is 370. hope this !

d (5 x (-20)) * (100 x (0.7))

step-by-step explanation:

5÷1/100 * -.7 *-20

copy dot flip

5*100 * -.7 *-20

rearrange

5*-20   * 100 *-.7

-100   *-70

7000