A.) Jack and Rose have jobs and contribute to the household expenses according to their income. Jack contributes 75 percent of the expenses, and Rose contributes 25 percent. Currently, their household expenses are $30 000 annually. Jack and Rose have three children. The youngest child is 12, so they would like to ensure that they could maintain their current standard of living for at least the next eight years. They feel that the insurance proceeds could be invested at four percent. In addition to covering the annual expenses, they would like to make sure that each of their children has $25 000 available for college. If Jack was to die, Rose would go back to school part time to upgrade her training as a nurse. This would cost $20 000. They have a mortgage on their home with a balance of $105 000. How much life insurance should they purchase for Jack?

B.) Considering the information in Problem 6, how much life insurance should they purchase for Rose?