(Answered) The clients net worth is 7500000 it consists of stocks and

Finance

The client's net worth is $7,500,000. It consists of stocks and bonds worth $6,000,000 and a $1,500,000 home. She is single and you are recommending that she buy life insurance to cover the estimated estate taxes due at her death.

Assuming a 40% tax rate and $5.25 million exemption from the death tax, how much life insurance should she buy?

$2,250,000
$900,000
$7.5 million
$875,000
$1,750,000

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