If Carly's husband were to die, she and her children could live on 50,100 per year. Carly makes 28,500 annually, and estimates additional income of 8,300 from other sources. How much insurance should she purchase on her husband to cover the shortfall, assuming a 17.7 prevailing interest rate? (Round to nearest 1,000)
A) 57,000
B) 84,000
C) 156,000
D) 75,000
Question 2
Cross receives a monthly paycheck from a bakery plant of 3,500.30. She is married and is entitled to 3 withholding allowances. How much is her taxable income? Use the percentage method tables in Exhibits 9-1 and 9-2 from your text.
A) 2,512.70
B) 3,044.06
C) 3,079.16
D) 3,289.73
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