`Peter is manager in a medical company. He is well-paid, successful man. He is 26 years old, and his annual income is $150000. He has wife and a tiny four-year-old son. Peter wants to buy insurance to finance his sons university studies. If everything goes well, his son will start university at the age of 18, and he will graduate from university after five years. Peter expects annual cost of $250000. How much Peter annually pay for the next five years. How much would Peter pay if he also wants the insurance company to pay his son $250000 and his wife $350000 if he dies in next 20 years Peter thinks about his retirement. He knows he will get an annual payment of $50000 from his company from his retirement age of 50 until he dies. But he wants a total annual income of $150000. How much will he pay premiums until he is 50? Peter wants to buy a house in next 8 years. House will cost $1250000. How much must peter pay to the insurance company now (once) to get the money from insurance.