Smith, age 40, earns $55,000 annually. His wife, Dilan, age 38, is a homemaker, and they have one child, who just turned age 8. Average expected inflation and the appropriate risk-free discount rate is 3 percent and 6 percent, respectively. His personal comsumption is equal to 20% of his after-tax earnings, and his combined federal and state marginal tax bracket is 25%.
Smith and Dilan have set the following goals and assumptions:
Income needed-readjustment period (1 year)	$ 55,000
Income needed-dependency period	$ 55,000
Income needed-"empty nest" period	$ 40,000
Income needed-retirement	$ 39,000
Estate expenses and debts	$ 15,000
Education fund needed (in today's dollar)	$ 122,000
Emergency fund needed (in today's dollars)	$ 20,000
Investment assests (cash/cash equaivalents) current liquid	$ 200,000
Expected Social Security income while child is under 16	$ 25,000
Expected Social Security income while child is 17 and 18	$ 12,000
Expected Social Security income in retirement	$ 21,000
Dilan's life expentancy	90 years
Dilan expects Social Security benefits to begin	age 65
Calculate the total life insurance needed using;
1) Human Life Value Method
2) The Financial Needs Method
3) The Capitalization of Earnings Method
Show your all calculations by using Excel functions or writing your calculator steps.