1. Adriana wants to provide income for her parents for 10 years should she die. Adriana earns $60,000 and feels that her parents could live on 60% of her current income. If the insurance funds could be invested at 5%, how much life insurance does Adriana need? Show all work for credit.
2. Suppose an individual has $45,000 in annual income and considering a home that they intend to finance with a $150,000 mortgage at 4% APR 30-year fixed rate loan, the real estate taxes and insurance are $2,000 per year, auto payments are $350/month, and student loans payments are $400/month. Would this individual qualify for this loan using a standard 28/36 ratio criteria? Show all work for credit.