Qm' p4tl5 marks! Karen, age 32, is married and has a son, age 2. She wants to determine how much life insurance she should own. She would like to provide $20,000 each year before taxes to her family if she should die. She owns a housejointly with her husband that has a current market value of $290,000 with a mortgage of $200,000. Karen and her husband also have $30,000 other personal and household property. She owes $5,000 on a car loan and credit cards- She would like to establish a $10,000 emergency fund, have the mortgage, car loan, and credit card debts paid off if she should die. She has $20,000 mutual fund investments, and her checking account balance is $2,000. She owns an individual life insurance policy in the amount of $50,000 that her parents pluchased for her when she was a baby. Estimated Social Security survivor benets are $10,000 annually. Karen assmnes the life insurance proceeds can be invested at 5 percent interest. a) Based on the capital retention approach how much additional life insurance, if any, should Karen purchase to meet her nancial goals? Show the steps for the capital retention approach. {3 marks) b) What is the human life value approach? What do you think of the human life value approach? (7 marks)