To meet marios needs what is the minimum amount of life


Mario and Danielle have been married for 10 years, are childless and have no desire to have children. Mario's annual net income is $120,000, and he has group life insurance for the same amount. Danielle's net income is $45,000 and she has no group insurance. Their home is valued at $320,000, and they currently have 20 years left on their $250,000 mortgage. Mario would like to donate an amount of $100,000 to the aged care home that cared for his parents. Danielle inherited $250,000 recently upon the death of her father, which they are using to maximize their registered retirement savings plan (RRSP) contributions. In the event of his own death, Mario would like to leave the house to Danielle mortgage-free. Required: To meet Mario’s needs, what is the minimum amount of life insurance coverage he should buy? Show your working.

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Financial Management: To meet marios needs what is the minimum amount of life
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