2) Peter has just turned 45 years old. He is interested in getting life insurance. He gures that he will need the insurance until he is 65 years old, at which point he will retire [i.e., he will retire on the day he turns 65.]. He currently earns $90,000 a year (before-tax) from his work (to be paid at the end of the year). He expects his salary to increase at the rate of 1% per year during the next 20 years. Assume that the salary is paid at the end of the year, and that his average tax rate is 25%. Peter's subsistent consumption is estimated to be $12,000 per year (increasing at the rate of 1% per year}, and he expects to live until 85 years old. The after-tart valuation rate is 3% p.a., annual compounding. (a) (2 points) What should be the amount of coverage for his life insurance under the human-capital approach