hard · Certified Financial Planner Risk Management

The Lindstroms are reviewing their disability coverage. Mrs. Lindstrom earns $250,000 annually. Her employer provides a group long-term disability policy covering 60% of salary, capped at 10,000 per month. The employer pays the full premium and does not include it in her taxable income.

If Mrs. Lindstrom becomes disabled and is in a combined 35% marginal tax bracket, what is her monthly after-tax disability benefit?

  1. $8,125
  2. $6,500
  3. $12,500
  4. $10,000

Sign up free to see the explanation and track your rank →

More Certified Financial Planner Risk Management practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 89,613+ practice questions, 30,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials