Answer:
C. $225,000.
Step-by-step explanation:
Hannah's annual income is $30,000. If the beneficiaries can get by on 75% of her income, we first need to calculate that amount:
0.75 * $30,000 = $22,500
The total amount of the life insurance policy would be calculated based on the percentage of her income that the beneficiaries would need:
$22,500 * (how many years) = life insurance policy amount
To find the correct amount of the life insurance policy, we can calculate the amount needed to provide for her beneficiaries for several years. Let’s assume we need a policy that covers a 10-year period (this is a reasonable length for many life insurance policies).
$22,500 * 10 years = $225,000
Therefore, the correct answer to how much the beneficiaries of Hannah's life insurance policy would receive if they can get by on 75% of her income is C. $225,000.
