1. James (aged 33) and his wife, Jennie (aged 30), have just purchased a new ( condominium for $550,000. They plan to take a 80% mortgage loan of $440,000 for the next 35 years. Raj has the following assets: BMW car $65,000 stocks on (stock exchange of America) $180,000 group insurance by his employers $400,000 personal insurance $250,000 James has a hire purchase loan on the BMW car amounting to $40,000. Should he pre-decease Jennie, James Plans to provide $36,000 per annum for Jennie till she reaches age 70. James would also like to create an Emergency Buffer fund of $50,000 and Final Expenses fund of $35,000. Using the CAPITAL LIQUIDATION method, compute the amount of additional life insurance that James needs to purchase. Assume a discount rate of 4% per annum and that income is received at the end of the period. 2. In the example above; as life mortality is uncertain, James would like to provide for his wife, Jennie, an income of $36,000 for an indefinite time period. Using the CAPITAL PRESERVATION method, compute the amount of additional life insurance that James needs to purchase. Assume a discount rate of 4% per annum and that income is received at the end of the period