Business-Finance

Questions  Solve for Zac and Mary’s vitality prophylactic needs using the subjoined approaches: · Human-Life Value Approach · Needs Approach · Capitalized-Earnings Approach    Problem Zac and Mary Johnson are 36 and 34 respectively. Zac has of-late been offered a new job as an IT engineer delay a newly created software posse that helps churches abundantly mix their giving, accoutrements, and part facts software where he can realize $102,000 per year. Mary generally stays residence and residenceschools their two end (Brayden (10) and Cora (7)) although she holds a CPA indulge in the propound of Indiana. Zac and Mary to-boot keep two Mastiffs (Fun and Games). Zac and Mary keep been married for 14 years and generally subsist in a grassy area beyond Indianapolis IN.  With excellent fluctuation, Zac and Mary keep fair realized that they procure be expected their third cadet. Proficient his sign A convertibility, Zac begins to handle solicitous that he has not done an bland job of indemnifying his family should colossus happen to him, especially delay the expectation of a third cadet.  Zac approaches you in your national men’s bible examine and asks to converge delay you concerning a revisal of his general prophylactic. He seems rather bothered by where he stands, specifically not proficient how abundantly vitality prophylactic he veritably should keep.  In the plan of your follow-up convergeing, he gives you the subjoined information: v General stipend: $102,000 v Annual stipend increase: 3.0% v Retirement Age: 67 v Expected inflation rate: 3% v Final expenses: $30,000 v Pay Tax bracket: 25% v Total monthly gregarious defence behoof per cadet until the cadet reaches 18: $3200 v College information costs $25,000 per year per cadet in today’s dollars starting at age 18 for lewd years. v Information inflation rate: 5% v Monthly pay needs for partaker until ultimate cadet is age 22: $5500 v Personal Consumption: 20% of pay v Investment avail expected to be 6% v Mortgage and claim repayment (as it stands today) is: $285,000