Can someone explain how the section about “the family’s living expenses declining by $30k per year” is pertinent to this question? At first glance, this seems like something to include in the calculation but it is not included in the answer
In the question it says family expenses = 95,000
Then we have 2 calculations in answer
Oliva’s expenses = 50,000 , Children 15,000 Add together 65,000
95,000 - 65,000 = 30,000
The expenses drop by 30,000 but we need to take into account different length of payment streams for Olivia and children.