a) Life insurance to be purchased = 15 years * $10000 = $150000
b) i. Assuming CY college fee = $10000 per year
Yearly the fees increases by 2%. Accordingly,
Year | Amount ($) |
1 | 10200 |
2 | 10404 |
3 | 10612 |
4 | 10824 |
5 | 11041 |
6 | 11262 |
7 | 11487 |
8 | 11717 |
9 | 11951 |
10 | 12190 |
11 | 12434 |
12 | 12682 |
13 | 12936 |
14 | 13195 |
15 | 13459 |
16 | 13728 |
17 | 14002 |
18 | 14282 |
19 | 14568 |
Total | 232974 |
Amount to be saved = $232974
b) ii. $839280. Yes enough money gets accumulated.
You are 35 years old You have a non-working spouse (same age) You have one child,...
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