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John, 38, makes $125,000 per year. He has a 35 year old wife, Nancy, and a...

John, 38, makes $125,000 per year. He has a 35 year old wife, Nancy, and a daughter who just turned 7. John’s share of the family’s consumption is 21%, and he pays an average tax rate of 28%. He plans to work another 30 years and expects salary increases equal to inflation, which he expects to be 3% annually. He expects to earn an 8% nominal rate of return on his investments.

1. Use the Human Life Value (HLV) method to calculate John’s appropriate amount of life insurance coverage.

Please show up calculate in Excel, Thank you!

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jeff jeffy answered 2 years ago
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