QuestionAugust 3, 2025

You are the wage earner in a "typical family," with 77,000 gross annual income. Use the easy method to determine how much life insurance you should carry. Note: Do not round intermediate calculations.

You are the wage earner in a "typical family," with 77,000 gross annual income. Use the easy method to determine how much life insurance you should carry. Note: Do not round intermediate calculations.
You are the wage earner in a "typical family," with 77,000 gross annual income. Use the easy method to determine how much life
insurance you should carry.
Note: Do not round intermediate calculations.

Solution
3.5(399 votes)

Answer

376,600 Explanation 1. Determine the Insurance Multiplier The "easy method" suggests carrying life insurance equal to 70% of your annual income for 7 years. 2. Calculate the Life Insurance Amount Multiply the gross annual income by the insurance multiplier: 77,000 \times 0.70 \times 7.

Explanation

1. Determine the Insurance Multiplier<br /> The "easy method" suggests carrying life insurance equal to 70% of your annual income for 7 years.<br />2. Calculate the Life Insurance Amount<br /> Multiply the gross annual income by the insurance multiplier: $77,000 \times 0.70 \times 7$.
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