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For each of the individuals described below, identify the appropriate method for calculating the amount of life insurance they should purchase and use it to calculate that amount.

John is married with no children. He and his wife both work and their combined debt load is $200,000. Funeral expenses are estimated at $6,000.

Brenda and her husband both work and they have two children. Each earns approximately $60,000 per year.

Joaquin is married and has one child. Both parents work. Joaquin earns $200,000 per year, while his wife earns $50,000 per year.

Brandon is a recent college graduate with no spouse or dependents and no debt. He is looking for his first full-time job.

Connie and Maurie are married with 3 children, aged 2, 3, and 5. Maurie provides childcare for the children, while Connie works and earns $150,000 per year.

Respuesta :

When John is married with no children and hee and his wife both work and their combined debt load is $200,000, the insurance policy is $103000.

How to calculate the insurance?

The insurance policy of John will be:

= ($200000 + $6000)/2

= $206000/2

= $103000

The method to use when Brenda and her husband both work and they have two children is the sink method which will be:

= $60000 × 70% × 7

= $294000

When Joaquin is married and has one child, the dink method will be used. This will be:

= $250000 × 70% × 7

= $1225000

For Brandon is a recent college graduate with no spouse or dependents and no debt and since he is looking for his first full-time job, there is no need to buy the insurance policy.

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