Stuart is looking to take out life insurance on himself naming his wife as a beneficiary. Stuart earns a good living of $15,000/mth with a MTR with deductions of 40%. When you met with Stuart he provided you the following information: His wife stays at home to raise their infant child and will not be returning back to work as they have decided to home school Primary residence $550,000 with the mortgage of $330,000 Outstanding car loan of $40,000 Monthly expenses are currently $9000 but expected to be $5000 without Stuart Final expenses $20,000 Emergency fund is short $25,000 Education fund for post-secondary $60,000 Donation to the hospice that helped his sister after her accident $100,000 Inflation rate of 2% per year Current investment returns at 5% (after-tax) What should the face amount of his insurance policy be using the replacement of income approach? Show your work. (3 marks) What should it be using the capital needs approach? Show your work. (6 marks)