Sam's annual income is $60 000 and Jane is staying home looking after their children. If Sam died, they figure it would take invested at four percent to provide suitable income for the family for 15 years until the kids are more independent. They would also like to have set aside for university for his two children. Sam and Jane's total RRSP savings are . How much life insurance does he need using the budget method?

a. $350 000

b. $270 000

c. $500 000

d. $390 000

please explain