Answer: $392,000
Explanation:
For the 7/70 method, one has to multiply the annual income by 70%. After the value is gotten, then we multiply the value gotten by 7 again.
Since the annual income is $80,000 l, the amount of life insurance that should be bought should be:
= ($80,000 × 70%) × 7
= ($80,000 × 0.7) × 7
= $56,000 × 7
= $392,000
