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John and Marie Fleming have one child, age 4. John earns $84,000 a year after taxes. John and Mar...

John and Marie Fleming have one child, age 4. John earns $84,000 a year after taxes. John and Marie agree that they want to support their child to age 18. John's Social Security account would provide the family an annual benefit of $38,220. If funds can be invested at 3% after taxes and inflation, how much life insurance does John need? The appropriate interest / present value factor is 11.296.

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4 5 Age of Chile 6 Support till Age 7 Nume of year 8 Investment rate 9 Discount factor 10 11 Annual Earnings 12 Annual benefi

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