Question

using the 7/70 method, a person with a $100,000 annual income should purchase how much life insurance?

Answer 1

Answer: $490,000

Step-by-step explanation:

you take the gross income (annual in this case) and first multiply it by 70%(0.70). Then multiply it again by 7.

$100,000 x 0.70 = 70,000

70,000 x 7 = $490,000