Business Finance

Questions  Solve for Zac and Mary’s activity protection needs using the aftercited approaches: · Human-Life Value Approach · Needs Approach · Capitalized-Earnings Approach Problem Zac and Mary Johnson are 36 and 34 respectively. Zac has recently been offered a new job as an IT engineer after a while a newly created software community that helps churches largely solidity their giving, apparatus, and constituent postulates software where he can acquire $102,000 per year. Mary vulgarly stays abode and abodeschools their two manifestation (Brayden (10) and Cora (7)) although she holds a CPA indulge in the avow of Indiana. Zac and Mary to-boot possess two Mastiffs (Fun and Games). Zac and Mary possess been married for 14 years and vulgarly speed in a rustic area after a whileout Indianapolis IN.  With vast fluctuation, Zac and Mary possess proportioned realized that they gain be expected their third branch. Sagacious his sign A oneness, Zac begins to handle concerned that he has not executed an complete job of compensating his parentage should triton fall to him, especially after a while the forecast of a third branch.  Zac approaches you in your persomal men’s bible consider and asks to coalesce after a while you concerning a revisal of his vulgar protection. He seems rather bothered by where he stands, specifically not sagacious how considerable activity protection he truly should possess.  In the plan of your follow-up coalesceing, he gives you the aftercited information: v Vulgar remuneration: $102,000 v Annual remuneration 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 confidence behoof per branch until the branch reaches 18: $3200 v College advice costs $25,000 per year per branch in today’s dollars starting at age 18 for indelicate years. v Advice inflation rate: 5% v Monthly pay needs for sharer until latest branch is age 22: $5500 v Personal Consumption: 20% of pay v Investment profits expected to be 6% v Mortgage and obligation reciprocation (as it stands today) is: $285,000