1. Using the "Human Life Value" method, how much life insurance should you purchase if you take into account 3% annual inflation over the next 45 years until retirement, an annual income of $61,500 received at the start of each years, and a time value of money of 7%? (Assume 100% income replacement and a marginal tax rate of 15%)
A: $1,545,823
B: $1,236,658
C: $1,590,033
D: $1,272,027
2. Using the "Human Life Value" method, how much life insurance should you purchase if you have 45 years until retirement, an annual income of $61,500 received at the start of each years, and a time value of money of 7%? (Assume 80% income replacement, ignore taxes and inflation.)
A: $836,740
B: $895,311
C: $669,392
D: $716,249