Vikram wishes to take out a life insurance policy with LongLifeCo, with a payout of $2,000,000 which will occur immediately after Vikram dies. Vikram will make regular fortnightly payments, starting in a fortnight's time. LongLifeCo invest the payments they receive from Vikram in a savings fund that pays interest of j₂₆ = 5.46% p.a. Vikram's life expectancy is 10 years. (i.e. expected to die after 10 years). The money accumulated in the fund will be used to provide the payout to Vikram's beneficiaries.

1. [2 marks] Illustrate the cashflows associated with this scenario as a fully labelled timeline diagram.
2. [3 marks] Determine the required size of their fortnightly payment, if LongLifeCo want to break even.
3. [1 mark] Describe and perform a sanity check for your answer to (b)
4. [5 marks] Construct a sinking fund schedule showing the last two deposits into the fund. Ensure that you show how you got your starting value, and also that you provide example calculations for one line from the table.
5. [1 mark] Describe and perform a sanity check for your answer to (d)