Layla meets with her insurance agent, Trong, to discuss her insurance needs. Layla has an after-tax income of $3,800 per month, her rent is $1,200, and her other expenses total $1,500 per month. Trong calculates how much life insurance Layla needs using the income replacement approach, adjusted for taxes. Assuming an annual investment return of 5% and an average tax rate of 30%, what is the approximate amount of life insurance needed?

a. $650,000

b. $900,000

c. $1.3 million

d. $1.5 milliom