Sam's Annual Income Is $50 000 and He Figures It

Sam's annual income is $50 000 and he figures it will take $250 000 invested at 6 percent to provide suitable income to his family for 12 years. He would also like to have $40 000 set aside to educate his two children. Sam's current savings are $20 000. How much life insurance does he need using the budget method?

A) $290 000
B) $500 000
C) $270 000
D) $770 000