Question

Noah and Kate Hudson are considering purchasing a life insurance policy for Kate. Noah's current annual earnings are $65,000 and Kate's current annual earnings are $72,000. If Kate should die, Noah intends to continue to work and their children will receive Social Security survivor's benefit of around $1,500 a month for 14 years (until the youngest child turns 18). Noah has a $80,000 group policy at work and Kate has a $100,000 group policy. They also have $60,000 investment assets. How much are their total available financial resources should Kate die (up to the youngest child turns 18 and ignore time value of money)?

	$181,000
	$991,000
	$2,310,000
	$1,091,000
	$1,400,000

2.

Lori ran over a stop sign and collided with another car. She injuries two persons in the other car that cost $136,000 and $21,000 in medical expenses, respectively. If her liability coverage was 100/300/50, what are the total medical expenses the insurance company would pay for this accident?

	$157,000
	$21,000
	$121,000
	$136,000
	$111,000

3.

Eddie had gross earnings from his salary of $55,000. He earned interest of $600 from taxable savings account and dividends of $1,000 from a taxable brokerage account. He also contributed to a ROTH individual retirement account of $4,500, His adjusted gross income would be:

	$61,100
	$55,600
	$55,000
	$52,100
	$56,600

Answer 1

1.)Noah and Kate Hudson are considering purchasing a life insurance policy for Kate. Noah's current annual earnings are $65,000 and Kate's current annual earnings are $72,000. If Kate should die, Noah intends to continue to work and their children will receive Social Security survivor's benefit of around $1,500 a month for 14 years (until the youngest child turns 18). Noah has a $80,000 group policy at work and Kate has a $100,000 group policy. They also have $60,000 investment assets. How much are their total available financial resources should Kate die (up to the youngest child turns 18 and ignore time value of money)?

Value of money = ($100,000*14 years)  

Ans:- $1,400,000

2.)Lori ran over a stop sign and collided with another car. She injuries two persons in the other car that cost $136,000 and $21,000 in medical expenses, respectively. If her liability coverage was 100/300/50, what are the total medical expenses the insurance company would pay for this accident?

Ans:- $21,000

3.)Eddie had gross earnings from his salary of $55,000. He earned interest of $600 from taxable savings account and dividends of $1,000 from a taxable brokerage account. He also contributed to a ROTH individual retirement account of $4,500, His adjusted gross income would be:

Gross pay = Salary + Rent + Dividend + Interest + All other Sources

= $55,000 + $600 + $1,000 + $4,500

Ans:- $61,100