3. Your client is asking how much life insurance she needs. She expects to earn $120,000 per year on average, working for the next 30 years. a. Suppose an appropriate earnings multiple is 18. How much life insurance should she purchase? (2 points)

b. Using a discount rate of 4%, what is her insurance need using the human value approach? (3 points)

The kamp family has twins, rob and rachel. both rob and rachel graduated from college 2 years ago, and each is now earning $50,000 per year. rachel works in the retail industry, where the mean salary for executives with less than 5 years' experience is $35,000 with a standard deviation of $8,000. rob is an engineer. the mean salary for engineers with less than 5 years' experience is $60,000 with a standard deviation of $5,000.