Richard Is Using the Capital Retention Approach to Determine How

Richard is using the capital retention approach to determine how much life insurance to purchase.Richard would like to provide $35,000 per year to his family,forever,if he dies.The assets that he has today will provide $25,000 in annual income without the liquidation of these assets.If life insurance proceeds can be invested to earn a 5 percent annual return,how much life insurance should Richard purchase to fund the additional income needed to meet the $35,000 annual income goal?

A) $10,000
B) $100,000
C) $150,000
D) $200,000