Carlos's wife earns 11,600 per year. If Carlos dies, his family would require 57,900 to cover their living expenses. Some of the yearly expenses would be offset by 29,200 from stock dividends, but this is still not enough. How much insurance should Carlos have to cover the shortfall, given a 13.7 prevailing interest rate?
A) 298,000
B) 423,000
C) 3,000
D) 125,000
Question 2
Manny is paid 2,640.00 on a monthly basis. He is single and is entitled to 1 withholding allowance. How much income, social security, and Medicare taxes will be withheld, based on the combined wage bracket tables in Exhibits 9-3 and 9-4 from your text?
A) 478.43
B) 417.49
C) 487.49
D) 508.49
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